Tuesday, February 15, 2011

Find: Rhapsody won't bow to Apple's subscription policy

Birthing pains in the new online software retailing market. Ben.

In case you weren't aware, Apple's newly launched App Store subscriptions aren't sitting so well with everybody. While the functionality could of course be a boon to services that have struggled getting paying customers, folks who have already been doing just fine, thank you very much, are balking at the new restrictions Apple has imposed. Rhapsody has issued a statement, which says that it's not going to play ball and even levels a bit of a threat: "We will be collaborating with our market peers in determining an appropriate legal and business response to this latest development." The big trouble stems from the fact that Apple requires anybody offering a subscription service to offer that service for the same price or less through Apple. That means you can still sign up folks through your own methods and get all the cash, but if anybody signs up through your app, Apple gets a 30 percent cut. In addition, Apple is no longer allowing applications to include a link to an external site for purchasing, which means vendors will have trouble getting new users to pay them directly instead of using Apple's simple but heavily-taxed option. Rhapsody claims that it can't offer its services at existing prices with Apple grabbing that much of the revenue, and it sounds like Rhapsody will be leaving the App Store soon if an agreement isn't struck.
Of course, this is just the shiny surface of the dirt Apple's new policies have scuffed up, and we might even have an antitrust case on our hands, according to the Wall Street Journal. Check out the more coverage link for more on that, and follow after the break for Rhapsody's statement in full.
Continue reading Rhapsody won't bow to Apple's subscription policy, issues statement
Rhapsody won't bow to Apple's subscription policy, issues statement originally appeared on Engadget on Tue, 15 Feb 2011 17:58:00 EDT. Please see our terms for...
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