iPhone apps that offer subscriptions to ongoing services can route payments through Apple or, if they have multiple means of delivering the service, can charge customers on their own websites. If apps take the default path and charge customers on Apple’s platform, Apple takes a 30% cut of first-year revenue and an ongoing 15% cut for every subsequent year.
“The user experience is much worse,” a marketing executive from one company told me. “When you buy with the developer, they have a relationship with you ... when you buy from Apple: sorry, you’re Apple’s customer, not ours, and if you have a problem with a subscription … we can’t really help them.”In addition, when multiple parties bid on the same ad slots, prices rise.
This source did agree, however, that placing ads for other companies’ products and using their trademarks was a little underhanded.
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