Monday, July 25, 2011

The Digital Books Market

According to an article in the Wall Street Journal Apple is no longer allowing companies to sell digital media using an app on an Apple device that links the buyer to the selling company's web page.  Apple will only allow the media to be sold directly from the app - not through a link from the app.  This gives Apple more control and now they will take 30% of the profits from the sale.  Kobo, a Canadian, e-book company was told this on Saturday and they had they had to alter their apps to accommodate this directive by Apple. 

The article states that this does not seem to have deterred magazine publishers from signing up for the Apple's subscription-sales platform.  I think that these companies really don't have much of a choice in this.  If they disregard Apple to take a stand they are losing money.  When a company like Apple is big enough, has enough power and market share the limits are pushed as to how far they will go in achieving as much control as possible. 

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