11Apr

Apple hit with antitrust lawsuit over e-book pricing

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ipad-ibooks

The US Department of Justice has today (Wednesday) filed an antitrust lawsuit against Apple regarding the pricing of e-books in its App Store. The lawsuit is focused around Apple’s pricing policy, known as the agency model, that Apple operates when it comes to selling you e-books. When it comes to buying physical books, publishers will set a wholesale…

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11Apr

Apple hit with antitrust lawsuit over e-book pricing

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ipad-ibooks

The US Department of Justice has today (Wednesday) filed an antitrust lawsuit against Apple regarding the pricing of e-books in its App Store. The lawsuit is focused around Apple’s pricing policy, known as the agency model, that Apple operates when it comes to selling you e-books. When it comes to buying physical books, publishers will set a wholesale…

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03Apr

The Interesting Part About Amazon’s In-App Payments Beta Is That Developers Have Pricing Control

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images-screenshots-captures-amazon-appstore-logo-21032011_00B4000000001978

The most interesting part of Amazon’s move to provide an in-app payments flow is that they’re ceding pricing control to mobile developers.

Amazon has been testing a new in-app payments system with several top-tier mobile developers for several months. It’s a big deal because there has been a huge shift over the last 18 months toward giving away apps for free instead of selling them for a dollar or more. This move would bring Amazon’s Android appstore closer to parity with Google and Apple’s stores for developers.

But the part worth noting isn’t that Amazon will offer an in-app purchases flow. It’s obvious that they would do that, given their experience in online payments and commerce and need to compete with Google’s app store. In fact, I have no idea why Bloomberg decided to report this story now, since top-tier game developers have been using Amazon to process in-app purchases since last fall. I even discussed this on-stage with developers at a conference in February. So this story is actually several months old. (Weird.)

The part worth pointing out is that Amazon is letting developers set their own prices for virtual currency and digital content. Developers set the prices and Amazon takes a 30 percent revenue share, a split that seems benchmarked off the precedent Apple set, according to conversations I’ve had with developers in the beta.

It’s a departure from the strategy the e-commerce giant tried to pursue last year. The Seattle-based company has historically fought to control the prices at which it sells both physical and digital goods as a way to undercut online and brick-and-mortar rivals.

When Amazon opened the developer portal about a year ago, it set a very unusual pricing policy for paid apps. Mobile developers couldn’t set the final prices of their apps. They would either earn 70 percent of the sale price (what Amazon actually sold the app for) or 20 percent of the developer’s desired price (whichever was higher).

Needless to say, this pissed off many developers. The International Game Developers Association lambasted Amazon’s policy a year ago, saying that “Amazon has little incentive not to use a developer’s content as a weapon with which to capture marketshare from competing app stores.”

Now it looks like Amazon is giving developers a little bit more control.

So why do in-app purchases get a special exception?

Because in-game economies are very painstakingly designed and calibrated to make sure there is an even balance between currency sources and sinks. Developers have to make sure a user’s progression through a game seems natural and addictive at the same time.

Letting someone else discount your in-app purchases at will would destroy this delicate balance. It would basically be unpalatable to game developers, who would forgo Amazon and just stick to Google Play or iTunes. It would mean that Amazon would forfeit the most lucrative part of the app economy — gaming.

Amazon hasn’t formally confirmed the beta or the revenue share. The store’s terms of service for developers still have no mention of in-app purchases, unlike Apple and Google which both issue restrictions. On iOS, developers have to use Apple for in-app purchases of digital content. Google has a list of “authorized payment processors,” which really means Google Checkout (er, Wallet) although the company hasn’t appeared to start enforcing it until this year.

The next interesting policy question for Amazon is whether this flat revenue share and pricing control extends to other types of in-app purchases. Like media subscriptions. (Cough.)



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03Apr

Backed By Time, Next Issue Launches A Tablet Newsstand With Netflix-Style Pricing

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next issue

With many magazine publishers look at tablets (especially the iPad) as their salvation, five of the big ones (Conde Nast, Hearst, Meredith, News Corp., and Time Inc.) banded together to create a joint venture called Next Issue Media. Today the company is launching its Android app.

CEO Morgan Guenther (formerly president of Tivo) says that despite all the excitement about bringing magazines to tablets, the current system has problems — specifically, the need to download a new app for every magazine. Gone is the “newsstand” feeling of walking into a store and browsing a rack of titles.

“It’s like if I walked into Barnes & Noble and wanted to browse magazines, and I was led into a room with you windows where I can read Fortune.” Guenther says. “And then I say, ‘Okay, I want to read Wired,’ and they send me to another room. When I walk in, there’s a big sign on the front door saying, ‘Here are your instructions for reading the magazine.’”

So Next Issue offers a single newsstand app where, eventually, you may be able to subscribe and read all your favorite magazines. Right now, it has 32 titles. Even though it’s a relatively short list, it’s an impressive one, including Better Homes & Gardens, ELLE, Esquire, Fortune, People, Sports Illustrated, The New Yorker, TIME, and Vanity Fair. You can purchase individual issues or subscriptions, and there’s also a free 30-day trial for each subscribers. The catalog begins with January of this year.

Guenther demonstrated the app for me earlier this week. There’s a nice 3D carousel for quickly flipping the pages, and publishers can add extra content like bonus photos, videos, and interactive features. Te interface is consistent between each magazine, so you don’t have to learn how to read different magazines.

But what I’m really excited about is the price. Individual subscriptions range from $1.99 to $9.99 per month, but there are also two unlimited options — you can pay $9.99 for every monthly and biweekly title, or $14.99 for everything, including the weeklies like TIME and The New Yorker. You probably won’t read every issue of every title, but you can follow your favorites, and dip in and out of others as specific stories and issues interest you. It’s almost like a Netflix plan for magazines.

Within the constraints of the Next Issue interface, the publishers have complete control over their content. Guenther says he wants to add social sharing and sicovery features next.

For now, the digital magazines just include advertising from the physical copies. Guenther says tablets have yet to reach an audience where it makes sense to create separate advertising programs — but not surprisingly, he wants to get there.

Oh, and if you don’t own an Android tablet (who does?), the company plans to submit its iPad app to Apple soon.



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21Mar

Samsung Galaxy S Blaze 4G Full Retail Pricing, Now Available In “Select Retail Stores”

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Screen Shot 2012-03-21 at 2.03.48 PM

If anyone out there has wondered what the full retail pricing would be for the Galaxy S Blaze 4G as it goes on sale at “select retail locations,” wonder no more. Thanks to a leaked price card, we can finally confirm a $449.99 retail price for the Blaze 4G. Value Plan customers will see $119.99 pricing after a $30 mail-in rebate with a $15 monthly… Read more

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