Apple changes its mind on in-app content subscriptions

by Kenny Hemphill on June 9, 2011

Apple has made a significant change to its in-app subscription rules just a few weeks before the deadline for compliance.

The change allows app publishers to offer subscriptions to app content outside of the app at any price they choose, without having to offer the same deal within the app.

The original policy stated that:

Apps can read or play approved content (magazines, newspapers, books, audio, music, video) that is sold outside of the app, for which Apple will not receive any portion of the revenues, provided that the same content is also offered in the app using IAP at the same price or less than it is offered outside the app. This applies to both purchased content and subscriptions.

The section that requires content to be offered within the app at the ‘same price or less than it is offered outside the app’ has now been removed.

The new rules state:

Apps can read or play approved content (specifically magazines, newspapers, books, audio, music, and video) that is subscribed to or purchased outside of the app, as long as there is no button or external link in the app to purchase the approved content.

This effectively that apps like Spotify can continue to sign-up customers to its paid-for services, such as its premium subscription, outside of its iOS without having to offer the same deal within the app and pay Apple 30% of the revenue. It won’t, however, be able to put a button in its iOS app which takes users to its website to sign-up.

The in-app subscription policy was unpopular with publishers, along with rules which give Apple ownership of subscriber data from in-app purchases, and contributed to the Financial Times launching a version of its content in HTML 5 format. The FT encouraged readers to create a Home Screen link to its content so that it effectively became an app.

Talking to paidcontent.org today, FT Managing Director, Rob Grimshaw said ‘The changes to the Apple’s T&C’s are great because it shows that they’re listening to publishers, but I still have great concerns around selling subscriptions through the apps channel.’

The new rules also added a clause banning most applications which allow US residents to check if the police have set-up drunk-driving checkpoints locally. The deadline for apps to comply with the terms and conditions is 30 June.

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