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Microsoft To Apple: Don't Take Your Normal 30% Cut of Office For iOS 724

Posted by Soulskill
from the gotta-pay-the-toll-to-cross-the-bridge dept.
An anonymous reader writes "Sources tell All Things D that Apple and Microsoft are at loggerheads over the cut Apple is expected to take of Office 365 subscriptions sold through Microsoft Office for iOS, which is expected to launch sometime next year. An update to Microsoft's SkyDrive app has been rejected after the company was 'pushing Apple to adjust the 70/30 revenue split in its developer license agreement. Predictably, Apple has refused to comply. It’s not yet clear what sort of concession Microsoft is seeking, but whatever it is, Apple’s evidently not willing to consider it.'"
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Microsoft To Apple: Don't Take Your Normal 30% Cut of Office For iOS

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  • Not actually 70/30 (Score:4, Informative)

    by gnasher719 (869701) on Wednesday December 12, 2012 @07:43AM (#42259023)
    One thing to remember: It is not actually the case that Apple gets 30% of the money, and the developer gets 70%. Each app has an "official" price, lets say $9.99 or $10 to make the maths easier. If you purchase it, the developer gets $7. However, Apple doesn't always get $10. There have been student offers where you could buy a Mac and get $100 for store purchases, which means Apple gets nothing and pays $70 to developers. Plenty of people give gift cards for Christmas, and if you buy a $50 gift card from some store, that store is taking its (generous) cut and Apple doesn't get $50, but still pays $35 to developers. I always manage to stock up with gift cards purchased with 20% rebate, so for £50 official price software, music or books that I buy, the developers get £35, I paid only £40, so I don't think that Apple keeps 30% of that.

    Now Apple's plan is not to make money from the stores (thought is just a welcome side effect), but to have good app stores to make you buy Macs and iPhones and iPads. Still, if Microsoft got say 80% of the "official" price, Apple might actually lose money on that.
  • by BonzaiThePenguin (2528980) on Wednesday December 12, 2012 @08:20AM (#42259221)
    You mean like Windows 8? You can't release Metro apps outside of the Windows Store.
  • Re:We are the 30% (Score:5, Informative)

    by guises (2423402) on Wednesday December 12, 2012 @08:28AM (#42259261)
    Microsoft only takes 30% for the first $25,000 of a given app. After that it's 20%.
  • by Nerdfest (867930) on Wednesday December 12, 2012 @08:52AM (#42259401)

    Well, you aren't forced to use Google's Plat store, there are others, and side loading is allowed as well. You are also not forced to go through Google for in-app purchases I believe. Both of these services are set up so that it is convenient, and you *want* to use it. You are not forced to.

  • by Anonymous Coward on Wednesday December 12, 2012 @09:01AM (#42259457)

    ... and Microsoft takes a cut.

    Actually, Microsoft allow you to do your own subscription transactions in the app, and do not take a cut of that, unlike Apple. To say that this is pretty major for everything related to subscription revenue is an understatement.

  • Re:We are the 30% (Score:5, Informative)

    by recoiledsnake (879048) on Wednesday December 12, 2012 @09:07AM (#42259497)

    No. It isn't. The only people who think that are those that have an axe to grind with Apple.

    a) Pretty much every other app store out there has the same deal and, more importantly

    No, stop playing the "poor Apple" card.

    This is about in-app purchases like Netflix subscriptions, ebook stores etc. Not 30% cut of apps.

    Seriously, the only people who still bring this up (and mod it "Insightful" on /.) are those who are utterly ignorant of reality and just want to gripe about Apple (while ignoring all the other app stores operating under the same terms)

    Wrong again.

    From http://blogs.msdn.com/b/windowsstore/archive/2012/07/20/making-money-with-your-apps-through-the-windows-store.aspx [msdn.com] [msdn.com]

    Using your own billing system

    Your app and service may already depend on a particular transaction provider or benefit from ties to other lines of business. Your customers want the trust and efficiency of a familiar, trusted transaction experience. You can use your own transaction provider within your app to provide the experience your customers expect.

    If you are not using the Windows Store as your transaction provider, you will want to make sure that your app meets all of the certification requirements such as: Identifying the transaction provider to the user during purchase confirmation Prompt the user for authentication before processing the transaction Your payment processor must meet the current PCI Data Security Standard

    For example, this wouldn't happen on Windows Store.

    http://voices.washingtonpost.com/fasterforward/2011/02/apple_bans_sony_e-reader_app_a.html [washingtonpost.com]

    http://www.tuaw.com/2011/02/21/apple-rejects-readability-due-to-subscription-policy-where-wi/ [tuaw.com]

    http://www.publishersweekly.com/pw/by-topic/digital/retailing/article/48130-apple-forces-e-tailers-to-remove-in-app-links-kobo-to-offer-html5-browser-ereader.html [publishersweekly.com]

    This wouldn't have happened on the Windows Store and probably not on Play Store as well(you can always sell an APK directly for sideloading or use one of the 3rd party stores on Android).

    Sorry, but Apple apologists like you need to come up with a better defense of Apple than trying to muddy up things by saying "everyone else is doing it". They're simply not.

  • Re:We are the 30% (Score:5, Informative)

    by mystikkman (1487801) on Wednesday December 12, 2012 @09:12AM (#42259531)

    No, it's 20%. Windows Store takes only 20% of sales above $25K.

  • by Desler (1608317) on Wednesday December 12, 2012 @09:30AM (#42259657)

    Well, you aren't forced to use Google's Plat store

    But if you want to reach 90%+ of all devices you'll have it on the play store.

    there are others,

    Like Amazon who also takes a 30% cut of all sales?

    and side loading is allowed as well.

    Of which very few people are going to ever do.

    You are also not forced to go through Google for in-app purchases I believe. Both of these services are set up so that it is convenient, and you *want* to use it. You are not forced to.

    Nope. [arstechnica.com] Google prohibits using 3rd party payment processors for in-app purchases. Google is acting no different than Apple.

  • Re:We are the 30% (Score:2, Informative)

    by mystikkman (1487801) on Wednesday December 12, 2012 @09:47AM (#42259787)

    So you mean between the open in-app purchases with own payment processors and only the 20% cut over $25k in revenue for an app, Microsoft's Windows Store for Windows 8 and Windows Phone 8 is much more open and better financially for developers than either iOS or Android? Say it ain't so! This is sure to explode some Slashdot posters' and moderators' heads!

  • by tgd (2822) on Wednesday December 12, 2012 @10:32AM (#42260229)

    Isn't MS planning on doing the same thing apple is through the windows store? and isn't the windows store the only way to get things on Windows RT?

    No, Microsoft takes 30% or less on transactions they run, but developers can collect money any way they want. An app can be free through the store and paid for via a license key bought on a company website if the developer wants to build their own infrastructure for that.

    Apple says, in essence, you can't sell content or features in an application through any mechanism but theirs, and they get the 30% in perpetuity if that sale is a subscription. That's why you can buy things in the Kindle app on Windows 8 but not on iOS. Microsoft isn't saying "you have to sell your application and anything associated with it through us", they're simply saying "you can only distribute modern apps via the Windows Store". You can monetize those via their services for 30%, or you can do it yourself via another mechanism and pay the percentage the other registration service charges. Or DIY and pay the processor fees.

  • Re:We are the 30% (Score:5, Informative)

    by fuzzyfuzzyfungus (1223518) on Wednesday December 12, 2012 @10:49AM (#42260427) Journal

    So... just reduce the price. Zero sounds about right, and then it does not really matter who gets what percentage of it.

    The fun part is that Apple demands 30% of any upsells through the app, even free apps. What hosed the 'skydrive' update was that it had an option to purchase additional storage baked into it somewhere, directly between you and Microsoft, without the tithe to Apple.

  • by tobiasly (524456) on Wednesday December 12, 2012 @12:06PM (#42261297) Homepage

    But if you want to reach 90%+ of all devices you'll have it on the play store.

    Humble Bundle seems to be doing just fine bypassing the Play store (and Google's fees) entirely.

    Of which very few people are going to ever do.

    Again, this is what Humble Bundle does.

    Nope. [arstechnica.com] Google prohibits using 3rd party payment processors for in-app purchases. Google is acting no different than Apple.

    Again, this is only for apps sold via the Play Store. You're welcome to bypass the Google ecosystem entirely. And they take a very small percentage [google.com] of the transaction, which is more in line with typical credit card fees, nowhere near close to the 30% Apple charges.

    Google is acting nothing like Apple.

  • by DragonWriter (970822) on Wednesday December 12, 2012 @12:22PM (#42261465)

    Google prohibits using 3rd party payment processors for in-app purchases.

    That article is, if not misleading at the time published, at a minimum outdated (as the reference to "Android Market" makes clear.) The current Google Play terms only require use of Google Play for in-app purchases for digital goods that are exclusively usable with the app:

    In-app purchases: Developers offering additional content, services or functionality within an application downloaded from Google Play must use Google Play's payment system as the method of payment, except:

    • where payment is primarily for physical goods or services (e.g. buying movie tickets; e.g. buying a publication where the price also includes a hard copy subscription); or
    • where payment is for digital content or goods that may be consumed outside of the application itself (e.g. buying songs that can be played on other music players)

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