Apple Shifts App Guidelines In Tussle With Media Companies
09 Juni 2011 - 6:47PM
Dow Jones News
Apple Inc. (AAPL) shifted its App Store policies in a move that
could have profound implications for media as the industry looks to
the rise of the iPad and other mobile devices as a new opportunity
to make money from the Web.
In revised App Store guidelines, the consumer electronics
company appears to have loosened the rule forcing media app
developers to only offer content for purchase through iTunes. Also,
Apple dropped language that required media companies to offer paid
content on the same terms that they offer the content
elsewhere.
The changes come as media owners resist the restrictions posed
by Apple's guidelines and as some, like Pearson PLC's (PSO)
Financial Times, experimented with ways to get around the
guidelines but still make their content available on Apple's
popular devices.
Apple takes a 30% cut of all media purchases or subscription
transactions that originate through its platform--a major financial
drawback for media companies. Also, Apple controls the user
information it gets from customers on its platform, information
that media companies view as crucial for marketing, advertising and
maintaining their connection with audiences.
There doesn't appear to be any changes made to Apple's app
guidelines on how customer data is handled.
The changes, reported earlier by the blog MacRumors, comes as
the popularity of Apple's devices--like its iPad, iPhone and
iPod--have left media companies struggling to balance their need to
partner with the tech company to remain relevant in the digital age
with their wariness of Apple's growing power over their
business.
There was no immediate reaction from media companies or Apple on
the changes.
This isn't the first time that Apple has appeared to ease its
app-developing rules in light of public pressure. For example, last
year, the company allowed a Google Voice app after initially
rejecting it.
-By Nat Worden, Dow Jones Newswires; 212-416-2472;
nat.worden@dowjones.com
(Ian Sherr contributed to this report.)
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