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“It is not possible for anyone but Apple to sell e-books at a profit on iOS under these rules,” says Morin, founder and CEO of BeamItDown Software, which makes an e-book app called iFlow Reader and sells books via its own online store.
Apple’s new rules, announced yesterday, say that developers such as BeamItDown must make their products available through Apple’s own store, where Apple takes a 30 percent cut of revenues. The change will affect companies that make their content—everything from books to movies and videos to TV shows—available to owners of Apple devices.
Until now, Morin and others, like Amazon, have sidestepped Apple’s store by employing a clever workaround—when you click on a button to buy a book, you are taken out of the app to a browser, where the transaction takes place.
Morin says Apple has told him in the past that this was perfectly fine.
“The bottom line is that unless the FTC intervenes, this will put us out of business,” says one developer. “Given Apple’s political clout, this probably will not happen."
But now Apple has changed its tune. Its new policy says that booksellers can keep selling books outside the Apple store, but only if they also make the same books available inside Apple’s store as well.
Thing is, most customers will buy via Apple, because it’s more convenient. And that’s where the problem arises.
Morin says he makes less than 30 percent profit on the books he sells. So if he has to sell via Apple’s store, he will lose money on every book he sells. On a $10 book, he will lose $1.15.
Daniel Acker/ Bloomberg via Getty Images
“The bottom line is that unless the FTC intervenes, this will put us out of business,” Morin says. “Given Apple’s political clout, this probably will not happen. But there is no doubt that their practices are anti-competitive. We have a much better e-reader than Apple, but that is utterly irrelevant in the totalitarian world of iOS.”
Even the big guys, like Amazon and Barnes & Noble, will suffer under Apple’s new rules, Morin says. Amazon and Barnes & Noble did not respond immediately to requests for comment. Neither did Apple.
Worse yet, Morin says, Apple’s new policies will prevent small developers from dreaming up new ideas for the iPad. “This is the death of innovation in e-readers on iOS,” Morin says.
Apple’s new rules also have huge implications for companies like Netflix and Hulu, which sell movies and TV shows via subscription. Essentially, Apple is demanding a 30 percent cut of their ongoing revenues from iPads. That’s the price for making their content available to customers who own Apple devices.
There’s no sense fretting about whether or not this is fair. Apple has a right (and, indeed, an obligation, as far as its shareholders are concerned) to extract as much value as possible from the online ecosystem it has created.
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Yahoo! Marketing, Tech and Management in the <b>News</b> | Yahoo <b>...</b>
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Lost: Internet Marketing <b>News</b>, If Found Please Let Us Know
You've heard of a slow news day, right? How about a slow news year? So far, 2011 has been a ...
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The best of times for the economy can be the worst of times for the stock market, and that may prove especially true in a market driven by trillions of dollars in monetary stimulus.
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Yahoo! Marketing, Tech and Management in the <b>News</b> | Yahoo <b>...</b>
A trio of stories from across the globe shows Yahoo!'s leadership.
Lost: Internet Marketing <b>News</b>, If Found Please Let Us Know
You've heard of a slow news day, right? How about a slow news year? So far, 2011 has been a ...
What Will Kill a Bull Market? Good <b>News</b> - CNBC
The best of times for the economy can be the worst of times for the stock market, and that may prove especially true in a market driven by trillions of dollars in monetary stimulus.
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Yahoo! Marketing, Tech and Management in the <b>News</b> | Yahoo <b>...</b>
A trio of stories from across the globe shows Yahoo!'s leadership.
Lost: Internet Marketing <b>News</b>, If Found Please Let Us Know
You've heard of a slow news day, right? How about a slow news year? So far, 2011 has been a ...
What Will Kill a Bull Market? Good <b>News</b> - CNBC
The best of times for the economy can be the worst of times for the stock market, and that may prove especially true in a market driven by trillions of dollars in monetary stimulus.
bench craft company scam
Yahoo! Marketing, Tech and Management in the <b>News</b> | Yahoo <b>...</b>
A trio of stories from across the globe shows Yahoo!'s leadership.
Lost: Internet Marketing <b>News</b>, If Found Please Let Us Know
You've heard of a slow news day, right? How about a slow news year? So far, 2011 has been a ...
What Will Kill a Bull Market? Good <b>News</b> - CNBC
The best of times for the economy can be the worst of times for the stock market, and that may prove especially true in a market driven by trillions of dollars in monetary stimulus.
bench craft company scam
Yahoo! Marketing, Tech and Management in the <b>News</b> | Yahoo <b>...</b>
A trio of stories from across the globe shows Yahoo!'s leadership.
Lost: Internet Marketing <b>News</b>, If Found Please Let Us Know
You've heard of a slow news day, right? How about a slow news year? So far, 2011 has been a ...
What Will Kill a Bull Market? Good <b>News</b> - CNBC
The best of times for the economy can be the worst of times for the stock market, and that may prove especially true in a market driven by trillions of dollars in monetary stimulus.
benchcraft company scam
Yahoo! Marketing, Tech and Management in the <b>News</b> | Yahoo <b>...</b>
A trio of stories from across the globe shows Yahoo!'s leadership.
Lost: Internet Marketing <b>News</b>, If Found Please Let Us Know
You've heard of a slow news day, right? How about a slow news year? So far, 2011 has been a ...
What Will Kill a Bull Market? Good <b>News</b> - CNBC
The best of times for the economy can be the worst of times for the stock market, and that may prove especially true in a market driven by trillions of dollars in monetary stimulus.
bench craft company sales
Yahoo! Marketing, Tech and Management in the <b>News</b> | Yahoo <b>...</b>
A trio of stories from across the globe shows Yahoo!'s leadership.
Lost: Internet Marketing <b>News</b>, If Found Please Let Us Know
You've heard of a slow news day, right? How about a slow news year? So far, 2011 has been a ...
What Will Kill a Bull Market? Good <b>News</b> - CNBC
The best of times for the economy can be the worst of times for the stock market, and that may prove especially true in a market driven by trillions of dollars in monetary stimulus.
bench craft company scam
Yahoo! Marketing, Tech and Management in the <b>News</b> | Yahoo <b>...</b>
A trio of stories from across the globe shows Yahoo!'s leadership.
Lost: Internet Marketing <b>News</b>, If Found Please Let Us Know
You've heard of a slow news day, right? How about a slow news year? So far, 2011 has been a ...
What Will Kill a Bull Market? Good <b>News</b> - CNBC
The best of times for the economy can be the worst of times for the stock market, and that may prove especially true in a market driven by trillions of dollars in monetary stimulus.
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