> My read is that Apple is looking ahead at a future full of small/startup ebook publishers.
If I was a small/startup, I would happily give over some percentage -- possibly even 30% -- of my revenue to Apple in order to avoid building my own payment system. The App store is really nice, and if they want to compete on the merits of the store, then that's great.
But Apple isn't doing that. They are using the power of their marketshare to force publishers into paying a 30% tithe to Apple just to put an application on the device. It doesn't matter if you are Amazon or the New York Times and already have your own subscription system -- you have to eat the 30% cut.
That's what bothers me about this. If Apple wants to compete by providing a more cost effective point of sale system, then that's great; everyone wins. But they are abusing a monopoly position to force publishers into their system, and in that game, Apple is the only winner.
If I was a small/startup, I would happily give over some percentage -- possibly even 30% -- of my revenue to Apple in order to avoid building my own payment system. The App store is really nice, and if they want to compete on the merits of the store, then that's great.
But Apple isn't doing that. They are using the power of their marketshare to force publishers into paying a 30% tithe to Apple just to put an application on the device. It doesn't matter if you are Amazon or the New York Times and already have your own subscription system -- you have to eat the 30% cut.
That's what bothers me about this. If Apple wants to compete by providing a more cost effective point of sale system, then that's great; everyone wins. But they are abusing a monopoly position to force publishers into their system, and in that game, Apple is the only winner.