Apple’s new regime for subscriptions to newspapers, magazines and books on the iPad will take many publishers aback but the most interesting standoff is with Amazon.
The two companies have been battling for supremacy on electronic tablets, with Apple’s adoption of the 30 per cent “agency model” having already undermined Amazon’s e-book price regime on the Kindle.
Apple’s announcement today includes the following:
“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.”
That is precisely how Amazon has worked around competition with Apple’s iBooks store on the iPad. The Kindle iPad app allows readers to buy books at the Kindle store through the iPad browser.
Apple is now presenting Amazon with a choice. Either it withdraws its iPad Kindle app or it allows Apple to take a 30 per cent cut of any Kindle e-book purchases on the iPad.
The Apple-Amazon standoff is intriguing because it involves two companies run by innovative, secretive, control freaks – Steve Jobs and Jeff Bezos. Mr Besoz’s response will be one to savour.
