Tuesday Midday Links:Least Helpful Amazon Reviews; Pub Exec Admits to Stripping DRM
“I don’t think you understand. We can’t treat newspapers or magazines any differently than we treat FarmVille.” With those words, senior Apple executive Eddy Cue stuck to his take-it-or-leave-it business model of a 30% revenue share payable for transactions through the iTunes service. Despite my arguments to Mr. Cue in Apple’s Cupertino, Calif., offices last year on behalf of news publishers seeking different terms, to him there was no difference between a newspaper and an online game.”
This is a quote from the WSJ article. The problem is that the Journal and Apple fails to tell the whole story and that is not everything sold by Apple for the iOS system is under the agency model. For instance, music is based on the wholesale model wherein Apple buys from the labels and resells at the price in which it deems appropriate. Further, books are tied to a price/ceiling set by Apple. Apps are not. I don’t believe magazines are either.