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NewsStand built into iOS 5
iOS 5 adds NewsStand, which is going to be huge for readers and publishers. Demoed at WWDC today, NewsStand looks just like the iBooks app, but this is for magazines and daily papers. Working a bit like the Kindle magazine system, NewsStand will update your magazines when they are published without any fiddling around by users. Magazines can be read offline, and Apple has apparently signed up a boat load of magazines and newspapers. The whole newspaper and magazine feature of iOS got off to a bit of a rocky start, with publishers not too happy about the Apple rules. It isn't clear if the rules have changed, but having the majority of your daily reading available in one place with auto downloads is a big step forward.
Condé Nast adds additional publications to iPad subscription options
Condé Nast was rumored to be reconsidering its pricing of subscription content on the iPad, but apparently that won't keep the publisher from expanding its offerings anyway. The company is going to be offering Allure, Glamour, Golf Digest and Vanity Fair in the mix, so users who want to subscribe to that content will be able to do so soon. In-app subscriptions will run US$19.99, with options available for monthly subscriptions or just individual back issues. And of course, if you're already a print subscriber to any of those publications, there will be a way to enter your information and get free access to the iPad content. That all seems like good news for both Condé Nast and its subscribers. There were a few kinks to work out with iPad subscriptions early on, but it seems like the market is settling down into a place where everyone considers the prices and the options agreeable.
Social sharing on The Daily dropping fast
The Nieman Journalism Lab reports that social sharing from iPad news app The Daily is falling precipitously, according to data from a firm called PostRank. Social sharing is when users share content on networks like Twitter or Facebook; the average number of pieces shared from The Daily on Twitter has fallen from over 200 to under 50 in just the past few months since its launch. There's two sides to this. First, these are obviously not actual readership numbers, and just because readers aren't sharing many articles doesn't mean they're not being read. It's also important to remember that The Daily subscriptions run weekly or yearly, so a certain amount of its readers have already paid for a year of content. However, given that this is one metric of engagement with the fledgling virtual publication, it's probably not a good sign. As Nieman's Joshua Benton says, this follows anecdotal evidence we've heard that the app has been declining despite an early spike in interest. If subscriptions and downloads correlate with these social sharing numbers, The Daily may be in trouble already. [via BetaBeat]
MLB.com CEO Bob Bowman talks about selling content on the iPhone
Major League Baseball Advanced Media is one of the most powerful developers on the App Store -- every spring, when the new version of the MLB app arrives, the company picks up a sizable chunk of income just from the mobile app, not to mention the subscription service that fuels the live game streaming. Bob Bowman runs the company, and All Things Digital has a nice long interview with him about the app market and how Major League Baseball has taken advantage of mobile. Straight off the bat (pun intended, sorry), he says that the company has seen a major difference between Android and iOS users: "The iPhone and iPad user is interested in buying content ... that's one of the reasons they bought the device. The Android buyer is different." That's interesting to hear -- I've heard exactly the opposite from the makers of Pocket Legends, that Android users were more willing to spend in-app money than iOS users. We're likely just talking about two different audiences here rather than different types of handset owners. Bowman also says MLB is "living with" the 30 percent cut from Apple on its subscription income, but hopes that "over time, the margin will fall from 30 percent." That's a hope for a lot of subscription sellers on the App Store, and most of those are much smaller than the base MLB has built-up for itself on iDevices. [via Edible Apple]
Torchlight's Schaefer: MMO subscriptions aren't the way to go
Runic Games CEO and Torchlight developer Max Schaefer knows a thing or two about addictive, loot-driven dungeon crawlers. After all, he was a founding member of Blizzard North and instrumental in the development of Diablo and Diablo II. So, when Schaefer talks about game design, people generally listen. Whether Schaefer's expertise extends to MMO business models is up for debate, though, which makes a recent interview at Charge-Shot.com an interesting read. "I don't think really anyone can do [subscriptions] anymore because pretty much everyone that does subscriptions has one for World of Warcraft," Schaefer posits, while speaking of his plans for the upcoming Torchlight MMO. While the majority of the interview focuses on the new Xbox Live incarnation of the original Torchlight -- as well as the forthcoming Torchlight II -- it's also a window into Schaefer's design sensibilities and therefore a possible barometer for the type of gameplay that fans might expect from a Torchlight MMO. "[Torchlight] is the kind of game you can play for 20 minutes before you got to go out to dinner, but it's also one that you can geek out on all night. It's just a very accessible format that gives people a chance to enjoy a game rather than work at a game," Schaefer explains. [Thanks to Craig for the tip!]
New York Times reveals labyrinthine subscription plans, Canadian readers already hitting paywall
We knew it was coming, and now The New York Times has followed through on its promise to erect a paywall for online content, which means no more free news -- kind of. Starting today in Canada and March 28th in the US, NYTimes.com will ask visitors reading more than 20 articles per month to pay for their info fix. The new plan offers monthly subscriptions of $15 with a smartphone app, $20 with tablet app, or $35 for complete digital access -- subscribers with a physical subscription will be granted a full pass, except on e-readers. Further convoluting the pay structure, entry from sites like Twitter and Facebook won't face the same restrictions, and access via Google is set at five free visits per day. Other news sources, including The Wall Street Journal, have already started charging for online content in the face of declining ad revenue, but this is certainly one of the most elaborate systems we've seen so far. The subscription plan was unleashed in Canada today, allowing the paper to iron out any kinks before hitting the US, which means you've got just under two weeks to hit NYTimes.com completely free -- after that, prepare to be confused.
New York Times website, iPhone and iPad subscriptions start soon
We knew it was coming, and now there is a date: the Gray Lady is charging admission this month. The New York Times digital products (the website, TimesReader app, phone apps and iPad edition) will be subject to a subscription fee for US customers starting March 28, with Canadian customers active now as a test population. Details were spelled out in a letter to readers and in a Times news story. As of 3/28, if you want to access the digital editions of The New York Times here are your options: At the New York Times website, NYTimes.com, you can view up to 20 articles a month at no charge. After that, you'll get a notice inviting you to subscribe. Links inbound from social media services like Facebook and Twitter will work independently of the 20-article limit, as will links from some search engines; Google inbound links will be capped at 5 articles per day, per reader. On smartphones like the iPhone and on tablets (iPad) the Top News section will remain free. To see any other sections, you must subscribe. There is no subscription plan available for just the NYTimes website. The lowest cost option is access to NYTimes.com plus a smartphone app for $15.00 per four-week period. A subscription to the NYTimes.com site and a tablet subscription is $20.00 for four weeks. Access to the website, smartphone and tablet editions is $35.00 for the same period. You can get a full breakdown on pricing here.
TinyGrab declines to sell subscriptions through the App Store
Add another name to the list of developers who are choosing to opt-out of Apple's subscription restrictions lately. Rhapsody and Readability were the first two we posted about, although Readability didn't so much opt-out as get rejected and decide not to play the subscription game. Now, a service called TinyGrab has posted that it won't be developing for the App Store because of "Apple's new greedy model." The company says that it was looking forward to providing its premium subscription-based file sharing service through the iOS and Mac App Store platforms, but Apple's restrictions on sharing user data and accounts that expire after a certain time are untenable for their business. The company is willing to pay the 30 percent cut, but unwilling to deal with Apple's terms that disallow any paid upgrades or features added to the app via outside subscriptions. The company still plans to develop for the Mac and, in fact, is about to release a new version of its software this week. But TinyGrab says that Apple has effectively "locked us out" of the App Stores by asking far too much in terms of the restrictions. Granted, none of these companies publicly fighting the restrictions are all that big, and we've already heard of plenty of companies who feel the rules are perfectly reasonable (and indeed, have already started making subscriptions available). Despite TinyGrab's objections, Apple is completely within its rights to make these requirements as long as they don't violate any antitrust laws. Still, there's definitely a growing number of developers unhappy with the deal they're being offered on in-app subscription purchases. Perhaps if Apple lowered the percent cut for services that happen to have content as a functional component of the service (as opposed to pure content plays like Kindle, Netflix, PopSci, The Daily, etc.) they would be more amenable to Apple's terms? TinyGrab will, at least, still be available as a standalone Mac application.
FTC and DOJ monitoring Apple's new subscription policy
Both the Justice Department and the Federal Trade Commission are aware of the new policy Apple implemented for media companies with applications in the App Store. The new terms state "that if an app offers customers the ability to purchase books outside of the app, the same option is also available to customers from within the app with in-app purchase." A prime example is the Sony Reader app which was reportedly rejected from the App Store because its iOS app linked to its own digital store and did not use Apple's in-app purchase system to sell its eBooks. This new policy takes effect June 30 and will drive many purchases through the App Store, giving Apple a 30% cut. U.S. regulators are taking a closer look at this policy to determine if it runs afoul of any federal antitrust laws. This interest is preliminary and may not turn into a formal investigation or sanctions against the company. The European Union is also closely monitoring this situation, but is currently not taking any action either. Apple was under the microscope last year following its decision to ban iOS applications developed using third-party tools such as Adobe Flash. Both the FTC and the European Commission launched an investigation, but Apple reversed this policy before a decision could be made by either regulatory body.
Elle, Nylon and Pop Sci gladly adopt Apple's subscription terms
Not every publisher's feathers were ruffled by the changes Apple made to its subscription policy earlier this week. While Rhapsody may have responded negatively to the changes, some publishers are accepting the new terms and adopting Apple's new subscription model. According to Advertising Age, three popular magazines, Elle, Nylon and Popular Science, will let customers subscribe via the App Store and, in return, will concede some of their valuable customer data to Apple. The trio believes the advantages of distributing content via Apple's mobile platform outweigh any potential disadvantages. Nylon is the smallest magazine of the bunch and will be least affected by the loss of customer information. The independent magazine eyes the monetary reward of increased subscriptions and assumes its customers will still provide demographic information via other methods. Popular Science shares a similar approach and may prompt users to share their information after they have purchased a subscription and received their second or third issue of the digital magazine. Hachette Filipacchi Media U.S., the publisher behind Elle magazine, is taking a wait and see approach. Rather than become enemies with Apple, the magazine is going to adopt the model and see how it turns out. The publisher also sees the model as being very fluid and one that Apple and publishers can modify over time. "I don't think this is something that is set in stone either for us or for Apple. I'd rather work with them to improve it over time than just sit on the sidelines," said Philippe Guelton, Executive Vice President and COO at Hachette Filipacchi Media U.S.
US Justice Department and FTC looking into Apple's new subscription policy
Apple unveiled its new app store subscriptions earlier this week with a decent amount of controversy and even an official statement from Rhapsody saying it would not comply with the new regulations. The new policy requires any company offering subscription services to offer the same service, at the same price (or less) through Apple, with Apple skimming 30 percent off the top. It also no longer allows apps to have links to external sites where purchases can be made. Now, reports the Wall Street Journal, antitrust enforcers in the US are having a preliminary look into the new arrangement. So, what does that mean? Well, these kinds of pre-investigations are pretty common, so it could mean nothing at all. Or, it could lead to a more formal investigation into if the policy violates antitrust laws. When asked for comment on the story, unsurprisingly, no one at Apple, the FTC, or the Justice Department would comment. We'll keep our eyes on this one and let you know if anything more exciting happens.
Google may introduce in-app purchasing to compete with Apple's model (Updated)
Google may debut its new in-app purchasing and subscription system to compete with Apple's controversial model. Similar to Apple, the Google system would let users purchase upgrades and other digital content within an application using Android's built-in payment system, Google Checkout. The new system for Android would give developers a 90 percent cut, while Google would grab the remaining 10 percent. This revenue split is more attractive than Apple's current 70:30. Google is reportedly rolling out this system as soon as today and is possibly introducing it early to capitalize on the dissatisfaction that is brewing over Apple's recent changes to its subscription and in-app purchasing policy. These changes now require content providers like Amazon to offer in-app purchases of content that is offered for sale via another channel. Application developers have until June 30 to comply with this new requirement or risk having their application removed from the App Store. This change would affect a wide variety of applications including the Kindle app, Hulu, Rhapsody and others. Rhapsody has already responded negatively to these changes, and other developers may follow suit. Will Google's Android model be enticing enough to get developers to jump ship or is everyone blowing this out of proportion? [Update: The original rumor is slightly incorrect. It is not Google's in-app purchasing model that is rolling out today. Instead, Google announced its One Pass subscription service for publishers. The service lets publishers set their own rates for content, which will be accessible via the web, tablets and smartphones. In-app purchasing will be available but only through mobile applications that can process an in-app purchase outside of the app store (i.e., probably not iOS). Revenue sharing is set at 90:10, and the service provides direct access to subscriber's data. It is designed to help publishers promote and distribute digital content.]
Rhapsody won't bow to Apple's subscription policy, issues statement
In case you weren't aware, Apple's newly launched App Store subscriptions aren't sitting so well with everybody. While the functionality could of course be a boon to services that have struggled getting paying customers, folks who have already been doing just fine, thank you very much, are balking at the new restrictions Apple has imposed. Rhapsody has issued a statement, which says that it's not going to play ball and even levels a bit of a threat: "We will be collaborating with our market peers in determining an appropriate legal and business response to this latest development." The big trouble stems from the fact that Apple requires anybody offering a subscription service to offer that service for the same price or less through Apple. That means you can still sign up folks through your own methods and get all the cash, but if anybody signs up through your app, Apple gets a 30 percent cut. In addition, Apple is no longer allowing applications to include a link to an external site for purchasing, which means vendors will have trouble getting new users to pay them directly instead of using Apple's simple but heavily-taxed option. Rhapsody claims that it can't offer its services at existing prices with Apple grabbing that much of the revenue, and it sounds like Rhapsody will be leaving the App Store soon if an agreement isn't struck. Of course, this is just the shiny surface of the dirt Apple's new policies have scuffed up, and we might even have an antitrust case on our hands, according to the Wall Street Journal. Check out the more coverage link for more on that, and follow after the break for Rhapsody's statement in full.
Apple's subscription model is boon to consumers, bad for publishers
As we reported earlier, Apple announced the arrival of new subscription services for apps in the App Store today. According to the press release, subscriptions purchased from within the App Store will utilize the same billing system currently employed for app and in-app purchases. Publishers are free to set the length and price of the subscriptions, which can be weekly, monthly, bi-monthly, quarterly, bi-yearly or yearly. Then with one click, customers choose the length of their subscription and are immediately charged for it. The great thing about these digital subscriptions for customers is that they can cancel their subscription at any time with very little hassle. They simply need to go to their personal account page to stop re-billing or cancel a current subscription. Anyone who has ever dealt with the headache of getting out of a magazine subscription will recognize this as a huge benefit of Apple's subscription model. However, as we've already seen, many content-based app publishers might not like all the new terms that Apple has laid out. All publishers of content-based apps (like Netflix, Hulu, etc.) must comply with Apple's new subscription service guidelines by June 30 or risk removal of their app from the App Store. The guideline compliance was originally rumored to go into effect March 31, but it seems that app publishers have four more months to make their apps compliant. Content-based app publishers are still free to sell content outside of the apps (like buying a Kindle magazine subscription from Amazon.com), but they now must offer the same content available for purchase directly within the app itself at the same or better price.
Washington Post extends free iPad app subscription
The free ride on the Post iPad app was supposed to end in mid-February, but the Post app has been updated, and the iTunes Store description says that the full access subscription is still "provided for a limited time." That's the same thing that another iPad paper, The Daily, did the other day. One wonders if the newspapers are afraid to pull the plug and see how a paid version will fare. I don't blame them. App Store reviews of both endeavors have been dreadful. Maybe they are trying to set up the in-app subscriptions Apple has allowed. This latest update to the Washington Post app now includes the ability to read offline (duh!) and fixes the frequent crashes that plagued the software. I haven't seen anything in either of these efforts that would convince me to subscribe when the free trial ends. How about you? Were you enticed by the apps, or are you going to dump them when or if the free trials end?
Apple officially launches App Store subscriptions
When Apple's Eddy Cue, Rupert Murdoch and others launched the iPad-only newspaper The Daily, Cue promised that its subscription model would be made available to other iOS publications soon. Today, Apple has officially launched App Store subscriptions. Subscriptions are purchased through the apps themselves using the same billing system that the App Store has employed for in-app purchases. Individual publishers are able to set their own prices and lengths of subscriptions. As for Apple, it takes the same 30 percent share that it currently pulls from other in-app purchases. Customers can manage their subscriptions from a special account page, and cancel a subscription when they're ready. In a press release, Steve Jobs explained the pricing model, saying, "...when Apple brings a new subscriber to the app, Apple earns a 30 percent share; when the publisher brings an existing or new subscriber to the app, the publisher keeps 100 percent and Apple earns nothing. All we require is that, if a publisher is making a subscription offer outside of the app, the same (or better) offer be made inside the app, so that customers can easily subscribe with one-click right in the app." Note that publishers may not provide links in their apps to purchase options outside of the app (like a subscriber website). This has been a long time coming. Now for the big question: will people subscribe to magazines and newspapers on their iPads? Show full PR text CUPERTINO, California-February 15, 2011-Apple® today announced a new subscription service available to all publishers of content-based apps on the App Store℠, including magazines, newspapers, video, music, etc. This is the same innovative digital subscription billing service that Apple recently launched with News Corp.'s "The Daily" app. Subscriptions purchased from within the App Store will be sold using the same App Store billing system that has been used to buy billions of apps and In-App Purchases. Publishers set the price and length of subscription (weekly, monthly, bi-monthly, quarterly, bi-yearly or yearly). Then with one-click, customers pick the length of subscription and are automatically charged based on their chosen length of commitment (weekly, monthly, etc.). Customers can review and manage all of their subscriptions from their personal account page, including canceling the automatic renewal of a subscription. Apple processes all payments, keeping the same 30 percent share that it does today for other In-App Purchases. "Our philosophy is simple-when Apple brings a new subscriber to the app, Apple earns a 30 percent share; when the publisher brings an existing or new subscriber to the app, the publisher keeps 100 percent and Apple earns nothing," said Steve Jobs, Apple's CEO. "All we require is that, if a publisher is making a subscription offer outside of the app, the same (or better) offer be made inside the app, so that customers can easily subscribe with one-click right in the app. 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." Publishers who use Apple's subscription service in their app can also leverage other methods for acquiring digital subscribers outside of the app. For example, publishers can sell digital subscriptions on their web sites, or can choose to provide free access to existing subscribers. Since Apple is not involved in these transactions, there is no revenue sharing or exchange of customer information with Apple. Publishers must provide their own authentication process inside the app for subscribers that have signed up outside of the app. However, Apple does require that if a publisher chooses to sell a digital subscription separately outside of the app, that same subscription offer must be made available, at the same price or less, to customers who wish to subscribe from within the app. In addition, publishers may no longer provide links in their apps (to a web site, for example) which allow the customer to purchase content or subscriptions outside of the app. Protecting customer privacy is a key feature of all App Store transactions. Customers purchasing a subscription through the App Store will be given the option of providing the publisher with their name, email address and zip code when they subscribe. The use of such information will be governed by the publisher's privacy policy rather than Apple's. Publishers may seek additional information from App Store customers provided those customers are given a clear choice, and are informed that any additional information will be handled under the publisher's privacy policy rather than Apple's. The revolutionary App Store offers more than 350,000 apps to consumers in 90 countries, with more than 60,000 native iPad™ apps. Customers of the more than 160 million iOS devices around the world can choose from an incredible range of apps in 20 categories, including games, business, news, sports, health, reference and travel. Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork, and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple is reinventing the mobile phone with its revolutionary iPhone and App Store, and has recently introduced its magical iPad which is defining the future of mobile media and computing devices.
The Soapbox: Time is money, friend
Disclaimer: The Soapbox column is entirely the opinion of this week's writer and does not necessarily reflect the views of Massively as a whole. If you're afraid of opinions other than your own, you might want to skip this column. MMOs are plagued by nasty -isms. Racism. Sexism. Nationalism. Ageism. Orientalism. Homophobia. Misogyny. OK, so those last two aren't really -isms, but you get my point. No matter how much we want our fantasy games to be zones of escapism, these prejudices chase us there. Sometimes we bring them with us as unwanted baggage that spills out in chat channels and character choices. And sometimes they're inherent in the game design itself. Classism is one such problem you'd think the internet would reduce or conceal, but the divide between the haves and have-nots is stronger in MMOs than ever. To illustrate that point and how it affects us as gamers, I'd like to talk about another set of games ruled not by skill or talent but by money.
App Store terms and conditions updated to cover subscriptions
If you download The Daily (or any other app) from the App Store today, you'll be prompted to read and accept new terms and conditions. The update addresses subscriptions; something we and publishers have been anticipating and debating for a long time. According to the new T&C, "Purchases of subscriptions to access the Services available through the Licensed Application are controlled, handled and processed by Apple and all payment and all other matters regarding such purchases (including any information you submit or that may be collected in connection with such purchases) are subject to and governed by the applicable Terms of Service and Privacy Policy of Apple. Accordingly, we encourage that you review Apple's policies prior to making any purchase." During this morning's announcement, The Daily became the very first newspaper app in the store to offer customers a subscription option. Users can opt to pay either US$0.99 per week or $39.99 annually as a one-time payment from within the app. During the question and answer session that followed, Apple's Eddy Cue was asked if and when this model would be extended to other app store publishers. His only answer was "very soon." We can only assume that publishers' ears perked up at that comment. For example, Time, Inc. and Apple have been at odds over the very model that The Daily uses for some time. In fact, Time went so far as to say that cost-cutting and other related problems have actually hindered the development of its Sports Illustrated app. Now that the cat is out of the bag, we expect to see subscriptions roll out within the month, maybe even the fortnight. Eliminating per-issue costs should help to reduce the slide that iPad magazines are currently experiencing.
Ongo for iPad is a good start, but it's far from a home run
We told you yesterday that Ongo was on the way to the iPad. It's now on the App Store, and I've had some time to play with it. Ongo is a joint venture by several newspaper companies to create a paid, ad-free news aggregator that is easy to use and will appeal to the news junkie. After some hours using the app, I found it attractively designed and easy to use. You can see and share top stories from several publications like the New York Times, USA Today and the Washington Post. The app doesn't cache much, so reading offline does not appear to be an option. You can save stories, called clippings, but once saved, I could not retrieve them without a data connection. The app allows you to sort news by type, like US or Arts and Entertainment, but there are no sections for tech (!) or even politics. It seems a glaring omission. You can certainly read stories on those subjects, but you can't sort them on your own. All the news in Ongo is created by a staff of five editors, so you're not getting the full NYT or USA Today. The staff choose what will be available, which I found troubling. Also, when searching for "Opinion," I only got material from the Washington Post. Worse yet, Hints from Heloise came up under the "Opinion" heading, with tips on cleaning pewter. Sorry, but I don't think that was a good editorial choice. There is a search function, and a query for Steve Jobs brought up many stories, none of which were relevant. They were just stories that mentioned someone named Steve and had the word "jobs" somewhere in them. An identical search in Google News worked perfectly. %Gallery-115241%
Former Newsweek editor planning iPad magazines
Former Newsweek Magazine President Mark Edmiston is planning to launch a set of magazines formatted for the iPad, according to a report out from Mashable today. Nomad Editions, a new media company launched by Edmiston, started releasing five digital weekly magazines this past fall: Real Eats, Wave Lines, Wide Screen, u+me and BodySmart, with the newest title, u+me, coming in February 2011. Each title is offered as a free trial for four editions/weeks, and after that, the price is US$6.00 per 90 days or $2 per month -- a pretty fair price for a weekly magazine. While Nomad Editions will be in competition with some other high-profile, iPad-centric publications, like Rupert Murdoch's The Daily and Richard Branson's Project, Edmiston has structured his company a little differently with a small staff of freelancers contributing content in exchange for a share of any revenue derived from sales. With some reports saying that iPad magazines aren't faring well over time, this should be a good comparison test to see which model performs better in this new digital marketplace. [via Mashable]
