Rhapsody Objects To New Apple Subscriptions Requirements

Rue Liu - Feb 15, 2011
Rhapsody Objects To New Apple Subscriptions Requirements

Apple’s new subscription rules first introduced for News Corp.’s “The Daily” has now fully rolled out for everyone. Apple just announced the new subscription model that will affect all publishers of content-based apps that intend to sell through the App Store. Rhapsody, the music subscription service is openly objecting to this new development and even considering taking legal action.

The new subscription model requires that all app developers or publishers of content-based apps will have to pay a 30% cut of their subscription revenue to Apple when users subscribe via the App Store. Music services such as Rhapsody have a hard time with this because they are already paying substantial fees to record labels and music publishers.

Rhapsody currently does not offer in-app purchases in their iPhone app, but instead re-routes the user via the phone browser to subscribe from their website. However, Apple’s new rules would require Rhapsody to include an in-app subscription option on which they would have to pay the 30% cut.

[Via Business Insider]

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