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Apple could lower its cut of subscription fees on video apps
Earlier this year Apple sweetened the split with iOS developers on subscriptions, by promising to halve its usual 30 percent cut -- once a user has been signed up for a year. Now, Bloomberg reports rumors that the company will move to an 85/15 split for all subscription video apps, with no time restriction. That could make partners and customers alike happy, since some services like Spotify, Netflix and YouTube have tacked on an extra buck or two whenever customers sign up via iTunes, just to cover the extra costs.
Apple's App Store is changing, starting with subscriptions
At next week's WWDC, Apple is set to unveil some major changes to the way developers and users interact with the App Store. According to Apple's senior VP of Worldwide Marketing (and perennial WWDC keynote presence) Phil Schiller, Apple is working to improve everything from the app review experience to the discovery process. But the most notable change is a shift in the business models to allow for subscriptions from any kind of app.
Firefox and Google renew revenue agreement, stick it out for at least three more years
There was a moment there, where things were starting to look a bit shaky for Mozilla. With the Firefox creators facing increasing competition from Google, in the form of Chrome, rumor had it that the organization's revenue sharing deal with the search giant had expired and may not be renewed. Well, those rumblings can finally be cast aside as Mozilla announced today that it had signed an agreement with the Mountain View crew that is "significant and mutually beneficial." The three-year revenue sharing deal should help keep Mozilla a float just long enough to permanently put IE under water -- at least we assume that's what the two are hoping for.
OpenFeint announces in-app content service, infrastructure to support freemium games
Social gaming network OpenFeint has finally unveiled its OpenFeint X service, which will allow developers on the App Store (and a few other mobile platforms) to add cloud-based microtransaction content to their games on top of Apple's own in-app purchase service. This is apparently a system that lives outside of Apple's own store, and allows developers to quickly and easily add in-app content without having to go through Apple's approval system. If that sounds confusing, it's because the system is still so new -- only a few developers have worked with it so far (though we're supposed to see it running in popular titles like Fruit Ninja soon), and the updates for providing virtual currency and goods aren't out yet. But this is the next step for OpenFeint -- after Apple released Game Center, OpenFeint's plan was to provide even more services on top of the Game Center functionality, and with the rise of freemium apps on the store lately, delivering this content is an important thing for developers to do. To kick off the new service, OpenFeint is holding what its calling a "million dollar challenge" -- the first 100 developers to sign up and use OpenFeint X will be able to earn up to $10,000 without sharing any revenue (which basically means OpenFeint is giving away $1 million of the money it would have made). After that, developers who use the service will enter a revenue sharing plan -- if you're a developer, you can find more details about that on the official website. This won't change things for most end users -- it likely won't matter to you whether you click one of Apple's buttons to make an in-app purchase or use code from another company. But it will be an interesting choice for developers to make. And given what we've heard about the growing revenues from in-app purchases, a service like this is showing up at exactly the right time.
Rentrak, Screen Media add Blu-ray to revenue sharing program
Expect to see more Blu-ray discs on the shelf of your local rental spot (for the three of you that haven't gone Netflix yet), now that Rentrak has added Blu-ray discs from Screen Media to its revenue sharing program. Simply put, it allows retailers to obtain the titles for little or no up front cost, while the studios share a percentage of the rental revenue after that. Other recently added suppliers include Anchor Bay Entertainment, E1 Entertainment, First Look Studios, Magnolia Home Entertainment and Summit Entertainment, while the first flick planned to be available under the new deal is Lymelife, available September 22.
iPhone 3G details: firmware 2.0 on June 27th, no OTA music downloads, AT&T to fine non-activators, new spy-shots
As the dust settles on the iPhone 3G / WWDC blowout, we've sifted through the debris and discovered a few eyebrow-raising tidbits you might be interested to know. The first of which is news that the next firmware update (2.0) could be headed to devices as early as June 27th, at least according to Apple's Australian iPod touch features page, which touts the arrival of the app store later this month. Meanwhile, Apple's cash cow won't get those OTA iTunes music downloads that were being heavily speculated on in May. Word on the street is that record labels are -- wait for it -- still holding out for those upped premiums, or that AT&T wants a cut of the action, which Apple is reluctant to hand over. Of course, AT&T wanting their share of that revenue makes good sense when you realize that the telco is taking a major hit on the sale of these devices -- a hit which will stall profits until 2010. Perhaps that explains the new rules about activation; according to a report from Reuters, the company will penalize customers who buy a phone but don't activate within 30 days, which falls in line with their aggressive new push to lock users into a contract... which looks exactly like the old cellphone business model. On a lighter note, iLounge has some real-world spy shots of the device's shell, which they claim smudges like it's going out of style, though it may be joined by a Product (RED) variation later this year. Enjoy!Update: Apparently Apple reps have confirmed that there won't be any early firmware updates for the masses, and that they're still on schedule for July 11th. The Australian site has since updated its info -- so put the champagne back on ice.[Thanks, Dan and Danny]Read - Australian iPod touch features pageRead - No Over-The-Air 3G Music Downloads For New iPhone; Labels Holding Out For Higher Price Per Track?Read - iPhone to cut into AT&T earnings until 2010Read - Real World Photos: Inside + Outside iPhone 3G's New Shell
Nokia's Comes with Music service revenue to be shared with operators
Remember Nokia's Comes with Music (CWM) service? The service which includes a full year of free DRM'd music downloads with the purchase of a CWM cellphone. Up to this point, Nokia has refused to comment on the financial details of the service. Important since "free" is expected to be anything but free with those music costs tucked neatly into the price of the handset, the carrier's data plan, or both. In an interview published by Bloomberg, Tero Ojanpera, Nokia Executive VP, discussed CWM and says that, "In those cases where we cooperate with operators, there will be an arrangement so they can get a piece." Something previously hinted at by Nokia's CEO back in December. Still no word on who, beyond Universal, will offer their music on the new service or how much the new bundled handsets will cost. Ojanpera did repeat that CWM won't be available on existing Nokia devices. For its part, Universal says that DRM is a definite component of the service -- a possible deal-breaker if that DRM limits your CWM downloads to a single handset and PC for eternity.
Nokia's Comes with Music revenue to be shared with operators
Remember Nokia's Comes with Music (CWM) service? The service which includes a full year of free DRM'd music downloads with the purchase of a CWM cellphone. Up to this point, Nokia has refused to comment on the financial details of the service. Important since "free" is expected to be anything but free with those music costs tucked neatly into the price of the handset, the carrier's data plan, or both. In an interview published by Bloomberg, Tero Ojanpera, Nokia Executive VP, discussed CWM and says that, "In those cases where we cooperate with operators, there will be an arrangement so they can get a piece." Something previously hinted at by Nokia's CEO back in December. Still no word on who, beyond Universal, will offer their music on the new service or how much the new bundled handsets will cost. Ojanpera did repeat that CWM won't be available on existing Nokia devices. For its part, Universal says that DRM is a definite component of the service -- a possible deal-breaker if that DRM limits your CWM downloads to a single handset and PC for eternity.
Nokia, like Apple, will seek its slice of the revenue sharing pie
The argument of the iPhone being an industry "game changer" repeatedly suffers the same pitfall: people end up arguing about the device, not the deal. Fact is, the oh-so-secretive, revenue-sharing model which Apple struck with AT&T, O2, T-Mobile, and Orange as part of their non-subsidized, carrier exclusive has changed the rules of carrier / device maker dance. Now Nokia, as you'd expect with their 40% market share, is asking for their slice of the pie. "As far as mobile phones are concerned we are sticking with our old business model," said Nokia CEO Olli-Pekka Kallasvuo, "that is, we get paid for our devices. But for providing new services we are seriously considering a shared turnover model." Hear that carriers, Nokia just put you on notice. With this and carriers now fighting to be seen as more open than their peers, well, we have a feeling that in a few years we'll barely recognize the US cartel of today. [Via MocoNews.net]
Talks between Apple and China Mobile squelched... or are they?
Barely a fortnight after Apple began talking with China Mobile about getting the iPhone into the ginormous Chinese market, it seems that negotiations are off -- or still on, or something. Yesterday, Nanfang Daily reported that China Mobile's CEO felt that the "iPhone model was not suitable for China," but unnamed reporters suggested that the real reason behind the call-off was the inability for both entities to agree on -- surprise, surprise -- a revenue sharing model. Today, however, a report over at Bloomberg notes that Apple has in fact not ended discussions with China Mobile, and moreover, it was said to have "denied newspaper reports" claiming otherwise. 'Course, we've got two sides of the story here, and while Apple may feel that there's still room to negotiate, China Mobile may see things quite differently. Time will tell, we guess.[Via Macworld]Read - Nanfang Daily reportRead - Bloomberg report
How much are you worth to Apple?
Think you're worth 3 bucks a month? Or even 11 bucks a month? Those are the figures being bandied around today over at Seeking Alpha regarding the secret details of AT&T's revenue sharing with Apple. The post suggests that AT&T may be paying Apple $3/month for AT&T customers who switch to the iPhone and $11/month for iPhone customers who have switched carriers to AT&T. They cite a recent Piper Jaffray research note authored by analyst Gene Munster. That sounds like a lot of money to me (especially for the switching customers) heading off to Apple along with the revenues on the physical iPhone sales.
