The Money Grab has begun. Apple today through its walled garden has thrown down the gauntlet saying you shall pay me 30% to pass through our gateway. Seriously the implications of today’s announcement must have companies like Netflix, Amazon and anyone else selling a product via their iPhone app wondering if they should be on their devices.
Apple has said pay up or get the hello out. After June 30th you cannot charge for anything unless you are willing to give Apple 30% of the proceeds. Most companies’ profit margins are under 10% and to think that Apple wants 30% is simply insane.
As a content provider who may someday sell access to some of my content. The implications of having to pay Apple 30% for the right to do so on their devices is a very steep percentage to pay.
So what’s next, will Apple demand a portion of adverting revenue running in the content. At this point no one should be surprised at anything this company will do to cash in and fatten their bank accounts.
Makes you want to go out and by an Android Device doesn’t it.