App Store apps and games can now charge subscriptions

by Griffin McElroy on Feb 15th 2011 1:58PM

We understand and appreciate the fact that we're your only source of important, relevant news and information -- but the launch of Rupert Murdoch's iPad-only newspaper The Daily is something that definitely deserves your attention. See, the publication requires an unprecedented in-App subscription to access; a feature that Apple has now enabled for developers of all apps, including iOS games.

The subscriptions are purchased in the same manner as in-app content, and publishers are free to set the price and length of subscription at whatever point they choose. Steve Jobs explained the revenue sharing system set in place for subscriptions in a press release, saying "when Apple brings a new subscriber to the app, Apple earns a 30 percent share; when the publisher brings an existing or new subscriber to the app, the publisher keeps 100 percent and Apple earns nothing." He says Apple requires publishers offering special deals on their subscriptions to have those deals reflected in-app as well.

So, how about it, gang? Any apps or games on your iOS devices that you'd drop a steady stream of bucks to play? We're not crazy about the idea, but if that's what it takes to get some more new boxes in Cut the Rope, we could be persuaded.

Source: TUAW

Tags: app, app-store, apple, ios, ipad, iphone, mobile, subscription

Reader Comments (47)

@HBlakeH117

It is not so great if you are the person who's game is on Installous. My first game created, "Save the Spheres" has been pirated at a rate of about 2:1.

Not so great for a solo developer.

Why?

@Trogdorwhore

So Apple can take 30%.

@mrmojoz

This..

AND ease of use. Customers are more likely to pay for a cheaper subscription than per issue for a publication. If a subscription is offered only through the creator out of iOS then people will be less likely to do it. If within the App it offered me that same price model, its a lot easier tog et someone to buy it with the press of a button.

@mrmojoz Or the publisher can get 100% if they bring in the new subscriber through their own means. Operating within the App Store gives you huge visibility and an enormous audience to sell to. 30% is not much of a price to pay for that opportunity.

Ask 2D Boy, they've sold more copies of World of Goo on iPad than they have anywhere else. Plus, they don't have to worry about people stealing their work.

@Trogdorwhore The idea was mainly for magazine/newspaper kind of things on iPad. But if developers want to use the feature for something else, they can.

@KillTheApex

2 wrong things here.

1) Apple get 0% of subscriptions. FACT.
2) Piracy exists on the iPad. FACT.

@KillTheApex
Define stealing...

@Smokemonsta
How about being freed?
Like jailbreaking yourself out free?

@zigie
I'd say it's taking money off someone who worked hard. You know, like if you get someones wallet and take what they've earned.
I can't imagine making games is cheap.

Tell me this.
If you had an idea, a great business plan, and I Inceptioned it (or if you just told me) from you and took all your money, would that be theft?

@VeeDeeVee

You're wrong though. If Apple brings the new subsciber to the app, they get 30%. If the developer brings in the new subscriber Appke gets 0%.

On the theft note. I am more than aware that people can pirate apps. My meaning was the majority of people buying apps don't know how to steal them.

You can split hairs about anything. Seems to be the only thing people know how to do these days in comments. Argumentative people are annoying as hell. The type of person that has a correction for everything that leaves someone's mouth. Those people suck.

@KillTheApex

You're asking us to take a sentence that says "they don't have to worry about people stealing their work" and intuitively complement it with "because the majority of people buying apps don't know how to steal them" but the thing is... On what kind of evidence is the second sentence based on?, and if its veracity is, in the best case, undetermined... Then why would it be expected from anyone to perform such mental process?.

Though I'm kind of just trying to annoy you because of what you said about argumentative people... ;).

It makes sense for magazines and newspapers... But the idea of a subscription model for the sort of time-wasting games that I tend to download for my iPhone seems counterintuitive. The freemium model seems to work a lot better in that case. Not that I'm an advocate for nickel and diming the consumer -- it just seems to be a better model for profitability economics-wise for the typical iPhone game.

@The Radio Waves Were Like Snow ..... Netflix also requires a subscription.

NOOOOOOO!!!!

Well, yes if this includes more Peggle.

oh wow... well, guess I won't be buying games and they are going to encourage people to hack even more now. Good job, keep up the good work.

@ghostdog

I don't think it's going to be as big of an issue as people are making it out to be.

It's been shown the money for iOS games is in the sweet spot at 99 cents. The cheaper games sell better, and people will always wait for price drops. Look at the EA discounts going on a second time.

Plus if we look at inapt purchases, we find them fairly few and far between. I might have one or two games that have any, and they aren't required. I don't expect this to have any more of an impact that that is.

IOf anything this could set the model for an iOS MMO that requires a monthly or yearly charge like WoW. So if anything I could see this applied to that.

Otherwise expect the continuation of cheap awesome iOS games.

Well if I could take a subscription for GI or EDGE then it sounds like an ok idea.

@Johnny Locke

Exactly, that's what I've been waiting for too.

@Johnny Locke

A subscription works as a one time fee.

Awww hell no...

Aside from Trogdorwhore, I don't think this is a surprise to anyone. The subscription model has dominated forms of media for years and it's only natural for it to appear for moblie apps.

The only issue is aside from maybe video (Netflix & Hulu) I don't see the drive for app makers to switch.

This could work for multiplayer games subscriptions, like if Meow Meow Happy Fight went MP.

The API for developers to put in-app subscriptions into their apps is in iOS 4.3 though, which has yet to be released. In-app subscriptions aren't possible just yet.

The in-app subscriptions are more for magazines than anything else. Charging subscriptions to play games simply won't fly in the App Store. The customer commands that marketplace and most people just wouldn't stand for it. This post doesn't mean games will have subscriptions, that's just ridiculous.

I'm excited for the ability to subscribe to magazines on my iPad finally, when 4.3 is released.

Of course. Anything to make Murdoch even more obscenely, undeservedly rich, go right ahead...

Keep in mind this is the same snob that heads Newscorp - you know, the people behind Fox, who were out a few months ago forcing a number of cable/satellite carriers to take it up the rear end and pay them horrendously bloated fees to continue carrying that largely-overrated network.

@CnEY

Damn. You mad.

Well, my second comment disappeared. That's a pretty sweet feature of Joystiq.com. Irritating guys.

Interested to see what developers do with it, worried about the potential abuse.

I wouldn't be surprised to hear an announcement from blizzard any time soon. Well--activision forcing blizzard....

Nothing involving Rupert Murdoch should ever be considered news.

Goddammit.

If it stops apps like this one crashing im in!

Just got an iPad a couple weeks ago. It is the first Apple device I have owned since 1996. I have be delighted with the iPad and the wonderful apps that go along with it. The pricing structure is wonderful and economical.

But, this news is horrible in my opinion. I can already see where this is going. It will be abused and overused...be sure.

You forgot a critical thing Apple did with that change. They also said that you can't offer the subscription at an higher price than your other offers. I don't mind the 30% even if it's ridiculous, you have a choice.

However, the price fixing attempt is trying to fix the market and prevent rivals from possibly having cheaper offerings (Android) or making everyone, even non-Apple customers pay the Apple tax. Or of course the publisher skipping Apple entirely. But that's still anti-consumerism at its worst.

I'm not sure if it applies to apps too though.

Is this really new? Motion X GPS charges for it's voice guidance on a subscription-esque fee.

I understand that this is more literal with publications, but if it heads on to games it's essentially the same thing.

Subscriptions won't take over on games, that's why many mmo's are turning F2P..

Microtransactions is where its at, iOS included

@ND92

Umadbro?

time to jailbreak

@EDZiLLUH

Time to over-react.

Seeing the success of Pocket Legends, which uses in-app purchases, I could see this system being used for other iOS MMOs. More WoW-style, where you pay to access all the content, instead of the Pocket Legends style of free to play but purchase additional content.

For what? No apps are endorsing this just yet and I'm jailbroken. Just pointing out that it seems counter intuitive to where the industry is moving. It'll work for publications I'm sure, but this isn't news. Just apple can get a cut. "umad" Memes are still hilarious

I'm already paying for a "subscription" to NYT Crossword puzzles... Not sure what this changes.

I cannot wait for my XOOM.....screw Apple

@GoonieGooGoo Enjoy that $1200 pile of feces and out-of-touch ideas. The tablet market is Apple's market for a reason.

@KillTheApex

Apple does own the tablet market right now, and with the current price point of the Xoom that will not change. However their will always be those who prefer to buy products like the Xoom, maybe Goonie has a good reason to own one rather than an iPad.

@atarii I'm ok with choice. It just seems a trend to hate Apple because they do well.

I think it's a teenager thing, they want to hate what's cool, except, in this situation they're hating an American company that came back from the brink of collapse on the shoulders of it's returning founder,Steve Jobs, who was foolishly ejected by a bunch of suits with their heads up their asses, and went on to become the tech/design powerhouse it is today.

@KillTheApex

Yeah....this looks REAL outdated and totally out of touch:

http://www.engadget.com/2011/02/17/motorola-posts-specs-for-gsm-and-wifi-only-xoom-indentical-to-o/

I think you're misunderstanding the subscriptions policy Griffin. To me, it sounds like they are talking about subscriptions to digital versions of magazines and newspapers, not paying a subscription to play a game. At least, I really hope that's not what it means.

App Store apps and games can now charge subscriptions

Reader Comments (47)

Posted: Feb 15th 2011 3:55PM mrblonde360 said

Posted: Feb 15th 2011 2:01PM Trogdorwhore said

Posted: Feb 15th 2011 2:17PM mrmojoz said

Posted: Feb 15th 2011 2:37PM Smokemonsta said

Posted: Feb 15th 2011 2:40PM KillTheApex said

Posted: Feb 15th 2011 3:19PM dscuber9000 said

Posted: Feb 15th 2011 3:23PM VeeDeeVee said

Posted: Feb 15th 2011 3:27PM zigie said

Posted: Feb 15th 2011 3:28PM zigie said

Posted: Feb 15th 2011 3:49PM VeeDeeVee said

Posted: Feb 15th 2011 7:28PM KillTheApex said

Posted: Feb 15th 2011 10:51PM ngSliver said

Posted: Feb 15th 2011 2:05PM The Radio Waves Were Like Snow said

Posted: Feb 18th 2011 5:04PM stevo13344 said

Posted: Feb 15th 2011 2:06PM Typhonic said

Posted: Feb 15th 2011 2:13PM ghostdog said

Posted: Feb 15th 2011 2:35PM Smokemonsta said

Posted: Feb 15th 2011 2:14PM Johnny Locke said

Posted: Feb 15th 2011 2:53PM Im No Hero said

Posted: Feb 15th 2011 3:23PM HaVoK308 said

Posted: Feb 15th 2011 2:18PM 343 Guilty Fart said

Posted: Feb 15th 2011 2:26PM Codeman said

Posted: Feb 15th 2011 2:28PM Idioteque said

Posted: Feb 15th 2011 2:35PM KillTheApex said

Posted: Feb 15th 2011 2:38PM CnEY said

Posted: Feb 15th 2011 2:53PM Bubbameister33 said

Posted: Feb 15th 2011 2:47PM KillTheApex said

Posted: Feb 15th 2011 2:53PM Keadin said

Posted: Feb 15th 2011 2:55PM SuperWoody64 said

Posted: Feb 15th 2011 3:02PM Apakal said

Posted: Feb 15th 2011 3:04PM EliminatorZigma said

Posted: Feb 15th 2011 3:18PM Oooodz said

Posted: Feb 15th 2011 3:22PM HaVoK308 said

Posted: Feb 15th 2011 3:26PM Ncrdrg said

Posted: Feb 15th 2011 3:28PM ND92 said

Posted: Feb 15th 2011 6:44PM atriux said

Posted: Feb 15th 2011 4:18PM EDZiLLUH said

Posted: Feb 15th 2011 5:11PM ZForce915 said

Posted: Feb 15th 2011 4:19PM bensmith91 said

Posted: Feb 15th 2011 9:35PM ND92 said

Posted: Feb 15th 2011 7:24PM leshrac55 said

Posted: Feb 15th 2011 8:21PM GoonieGooGoo said

Posted: Feb 15th 2011 8:56PM KillTheApex said

Posted: Feb 15th 2011 9:15PM atarii said

Posted: Feb 16th 2011 1:43AM KillTheApex said

Posted: Feb 17th 2011 5:59PM GoonieGooGoo said

Posted: Feb 16th 2011 11:35AM jtsuth said

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