Apple’s Advocate Explains the Grab for 30%

Like many, I reacted very negatively to Apple’s new policy: any paid content inside iOS apps be available through Apple’s subscription system, must be available at the lowest price, and must give Apple a 30% cut of that price.

John Gruber has written a very thorough analysis of the popular arguments against this new policy, and attempts to divine Apple’s reasoning for implementing it:

Apple doesn’t give a damn about companies with business models that can’t afford a 70/30 split. Apple’s running a competitive business; competition is cold and hard. And who exactly can’t afford a 70/30 split? Middlemen. It’s not that Apple is opposed to middlemen — it’s that Apple wants to be the middleman. It’s difficult to expect them to be sympathetic to the plights of other middlemen…

This is what galls some: Apple is doing this because they can, and no other company is in a position to do it. This is not a fear that in-app subscriptions will fail because Apple’s 30 percent slice is too high, but rather that in-app subscriptions will succeed despite Apple’s (in their minds) egregious profiteering. I.e. that charging what the market will bear is somehow unscrupulous. To the charge that Apple Inc. is a for-profit corporation run by staunch capitalists, I say, “Duh”.

Gruber has scored a direct hit on Apple’s strategy, and his explanation makes it seem very solid for Apple, its customers, and content creators. The biggest losers are Apple’s competitor middle-men. I think Apple’s main interest is being the best damned middle man in the business. The only problem is that some of those middle-men make products I really like, and Apple will only play ball with them if Apple gets to make the rules.

Daring Fireball: Dirty Percent