Apple is mulling over the decision to lower the 70/30 revenue system for app purchases and in-app micro transactions. The company is currently battling a number of alternative ecosystems such as Google Play and Amazon. If Apple were to lower its percentage it takes from purchases, it may make selling e-books, newspapers and magazines much more viable.
The current word on the street is that Apple is planning on offering publishers a better revenue system in order to make the Newsstand more viable. Publishers operate on razor thin margins and lowering the cut Apple takes for each subscription taken out, would be more appealing.
Currently there are no plans to change the revenue system for app developers. Not only are publishers being courted for this revised system but also television and media companies.
The Apple Newsstand as lost its sheen and many companies are not as bullish on the platform as when it first launched. In 2012, John Gruber said that Newsstand is a place where apps go to be forgotten. Today the Newsstand app is much worse. The folder-like design in iOS 5 and iOS 6 has been replaced with an opaque app icon. The end result is so horrible that it's hard to avoid thinking it was done maliciously: if someone was tasked with hiding away a set of unwanted apps, they would be likely to come back with a design that was something very much like the iOS 8 Newsstand.
In 2014 Apple paid out $10 billion dollars in royalties from people downloading paid apps and making in-app payments. The one industry not getting anything are companies such as Amazon, Barnes and Noble, Kobo and Google. Rather than pay Apple as high percentage of each e-book purchase, they aren’t participating in likely the world’s most lucrative ecosystem.
If Apple does lower its revenue system to 90/10 or even 95/5 it might be the kick in the pants the publishing industry needs in order to sell e-books and still make a profit. It would also be more appealing to companies to give the Newsstand a second look.
Saturday, June 6, 2015
Welcome to the Good e-Reader Radio Show! Today we feature some of the key audiobook deals that are available as part of Audiobook Month. There are a number of retailers hyping up some big savings, so you want to check it out.
The feature stories on the show today are the challenges of self-publishing audiobooks and the lack of competition in this space. There is little to no discovery services or self-publishing companies willing to produce or sell audiobooks on an authors behalf.
Why are e-book prices so expensive suddenly? Lots of people have been wondering why the same book that cost $9.99 last year is suddenly $12.99 or more.
Finally, summer is on its way and everyone seems to be hyping up various reading campaigns. New research though states the vast majority of kids have never been to the bookstore and fewer have ever received a book as a gift.