New Apple App Store Rules Anger Rhapsody
February 16, 2011 at 4:23 AM (PT)
RHAPSODY is complaining that APPLE has instituted new rules for iPHONE and iPAD app subscriptions that are "economically untenable," "and it has teamed up with other music services to consider options, possibly including legal action," reports BUSINESSINSIDER.COM. The new rules, said BI, "put music services into a tough spot because unlike magazine publishers they are already paying substantial fees to record labels and music publishers."
The new rules on the APPLE store changes the way the app developer or publisher are paid. When an app user buys a subscription through that app, the developer or publisher is required to give APPLE 30% of the subscription revenue -- just like APPLE takes a 30% cut from all app sales in the App Store.
RHAPSODY said it cannot continue to "offer our service through the iTUNES store if subjected to APPLE's 30% monthly fee versus a typical 2.5% credit card fee."