Why Apple’s New Subscription Policy Will End Up Hurting Apple, Too

[Commentary] Apple announced its intention to tighten its hold on the payment for and the delivery of content through its successful iTunes platform. Apple will require that all content experiences that can be paid for in an Apple app must be purchasable inside the app, with Apple collecting its 30% fee. The app can no longer direct you to a browser or some other means for completing a transaction. Crucially, the in-app purchase offer must be extended at the same price as the same offer made elsewhere. Though the announcement of the subscription model was the triggering event, the policy extends to all paid content. Apple's new policy is sufficient to make providers of content aggressively invest in alternative means to reach the market, especially for their subscription-based content. Perhaps it’s healthy that the content industries were able to so quickly see that Apple isn't really a savior for their businesses after all. At least now they can make decisions based on market facts rather than market hopes. And if the sour taste in their mouths is good for anything, let’s hope it motivates them to get out there and show everybody that they still have content experiences to offer, content experiences we want, content experiences worth paying for.

[McQuivey is an analyst at Forrester Research]