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iPhone

Apple Announces In-App Subscription Model for iPhone App

Tuesday, March 17th, 2009 at 1:31 PM - by Bryan Chaffin

Apple announced Tuesday a new subscription model for iPhone apps the company is calling In-App Subscriptions. The model allows developers to charge for additional content, including such things as new levels for a game, additional cities for a city guide, or renewing one's subscription to a magazine, all from within the app without having to return to the App Store.

The company made the announcement at its iPhone 3.0 preview event in Cupertino. According to Engadget, Apple executive Scott Forstall also stressed that the subscription model would only be available in paid applications, thus preventing users from being tricked into downloading "free" apps whose content has to be unlocked.

The subscription system will use iPhone's standard popup windows, and subscription/new content charges will go through your iTunes account. Apple will use the same revenue split as with any other iPhone app where the developer gets 70% of revenue, and Apple keeps the other 30%, out of which the company pays all fees associated with selling the app.

2 comments from the community.

You can post your own below.

webjprgm said:

March 17th, 2009 at 2:06 PM

So it’s probably a good thing that free apps remain free, but there’s still no way to implement shareware.  There ought to be a third category, then, which is clearly differentiated in the iTunes store as shareware, which can use the same in-app purchase model to unlock the full version. 

At present, game developers often have to release a ‘Lite’ version and a full, paid version to get around this issue.  Well, maybe that’s OK. What do you all think? I think I’d check out a lot more apps if there was a trial period or more apps had ‘Lite’ versions.  But if every app had a ‘lite’ version it would make the list of apps longer with all those duplicates.

Also, does anyone else find it scary to think of all the ways developers are going to find to charge us for things?  Did you see the TouchPets demo where they charged a buck (?) for a “shirts pack”?  I don’t like that idea.  It’s fine to do something like Half Life 2’s episodes, but I don’t want to be asked to pay a dollar every 5-10 levels.  I hope this in-app purchasing model is not abused.

   Quote

D9 said:

March 17th, 2009 at 2:06 PM

Gosh, what a brilliant solution Apple has developed for itself. Not only has the App Store proven to be the “killer app” for the iPhone, but now they’ve provided themselves with a means to have a continuous cash stream not only for developers, which entices them, but for Apple itself…all without the need to increase prices or raise selling percentages.

I can see why Microsoft and others could care less that they’re copying the App Store for their phone solutions…it’s perfect for a means to promote and profit off your hardware sales!

/

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