Jun 19, 2011

Are the changed subscription rules for iOS really a good thing for customers?

In episode #29 of the “Build and Analyze” podcast Marco and Dan discuss the recently changed in-app purchase rules for iOS applications with subscriptions. According to the updated rules it is no longer prohibited that publishers offer the same subscriptions for a lower price outside the iOS App Store in their own web stores. The App Store rules however still prohibit that applications provide direct links to such alternative web stores.

Marco comes to the conclusion that this change is a good thing since the new rule is more fair and allows publishers to charge higher prices in the for the in-app purchase in the App Store to account for Apple’s commission.

I disagree with this assessment. While I concede that the new rules are definitely more attractive from a publisher’s perspective, I would argue that the general user experience is now significantly worse for the customer. Before, a customer was guaranteed to get the best price for a subscription through in-app purchase, which is at the same time also the most convenient way to make the purchase. With the new rules customers are confronted with the possibility that the same subscription might be available at a lower price in an alternative store. But since applications are not allowed to link to these stores, there is no easy way to find out about the best option to buy the subscription. Hence the (price sensitive) customer is left with the task to do the research for the best price himself.

I’m puzzled that Apple made this change, which seems to put the interests of publishers in front of the interests of customers. It may be the Apple figures that most users will just use the in-app purchase anyway.

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