Apple Announces App Store Subscriptions

Apple today announced a new subscription model for the App Store. Arriving nearly two weeks after the launch of The Daily, the subscription service is available to all publishers of content-based apps. While the most obvious application for the service is digital magazines and newspapers, the subscription service is open to makers of video and music apps as well.

Apple has specified that, similar to the micro-payment based In-App Purchase model, app publishers set the price and duration of their respective subscriptions. App publishers are afforded the option for weekly, monthly, bi-monthly, quarterly, bi-yearly, and yearly subscription commitments. Customers can purchase subscriptions in the similar way to acquiring apps. Active subscriptions can be managed through a customer’s iTunes account page, and can be renewed or canceled at any time. Steve Jobs commented the following on the newly implemented service:

We believe that this innovative subscription service will provide publishers with a brand new opportunity to expand digital access to their content onto the iPad, iPod touch and iPhone, delighting both new and existing subscribers.

As with all existing In-App purchases, Apple will retain a 30 percent share of a developers gross revenue. Jobs was quick to divulge that while Apple will make a cut from subscriptions taking place within the App Store, publishers will earn a 100 percent share from subscribers they solicit through alternate channels. The sole rule governing this option is that publishers provide an equal, if not better deal from within the App Store.

All Things Digital reports that App Store publishers with existing apps lending themselves to the new subscription service, have until June 30th to comply with the new standards. This means that existing digital magazines can—and may continue to be—offered on an app per issue basis until mid summer.