Now take that and move that to Amazon's domain. The currently offer insanely low prices. Selling each book with a 30% to apple can make their profit margin zero or less.
There's a new ecosystem waiting to be born here.
My read is that Apple is looking ahead at a future full of small/startup ebook publishers.
At the local iPhone dev meetup, I met this college kid with a modest little Catholic prayers and affirmations app. It's basically the electronic equivalent of a pamphlet. He doesn't put any effort into marketing it. It makes $150/month. Granted, that's a small amount, but a very tiny amount of investment went into that small return. With a little effort, I bet there's a lot of independent authors who could make a living publishing this way, and that the big players in ebooks and publishing are actually in the way of this ecosystem coming into being.
> My read is that Apple is looking ahead at a future full of small/startup ebook publishers.
If I was a small/startup, I would happily give over some percentage -- possibly even 30% -- of my revenue to Apple in order to avoid building my own payment system. The App store is really nice, and if they want to compete on the merits of the store, then that's great.
But Apple isn't doing that. They are using the power of their marketshare to force publishers into paying a 30% tithe to Apple just to put an application on the device. It doesn't matter if you are Amazon or the New York Times and already have your own subscription system -- you have to eat the 30% cut.
That's what bothers me about this. If Apple wants to compete by providing a more cost effective point of sale system, then that's great; everyone wins. But they are abusing a monopoly position to force publishers into their system, and in that game, Apple is the only winner.
There's a new ecosystem waiting to be born here.
My read is that Apple is looking ahead at a future full of small/startup ebook publishers.
At the local iPhone dev meetup, I met this college kid with a modest little Catholic prayers and affirmations app. It's basically the electronic equivalent of a pamphlet. He doesn't put any effort into marketing it. It makes $150/month. Granted, that's a small amount, but a very tiny amount of investment went into that small return. With a little effort, I bet there's a lot of independent authors who could make a living publishing this way, and that the big players in ebooks and publishing are actually in the way of this ecosystem coming into being.