Google launches 'One Pass' for publishers as Apple's iOS payments frustrate

Posted:
in iPad edited January 2014
Google on Wednesday announced a new Web subscription service for publishers called "One Pass," in which the search giant will keep just 10 percent of revenues in transactions, compared to Apple's 30 percent cut of iOS content.



Google One Pass allows subscribers to access content they've paid for on a variety of devices using a single username and login on a website. It also offers business model flexibility, allowing content providers to offer subscriptions, day passes, metered access, pay-per-article, or multi-issue packages to customers.



"By providing a system for user authentication, payment processing, and administration, Google One Pass lets publishers focus on creating high quality content for their readers," the company said. "Publishers have flexibility over payment models and control over the digital content for which they charge and the content that is free for consumers."



One Pass also allows publishers to grant access to existing subscribers through a coupon-based system. Publishers host their own content, and must add what is referred to as a "small amount of code" to a website. "Development effort is minimal," Google said.



The new service was announced just a day after Apple unveiled its own subscription plan for software on the iOS App Store. Apple takes a 30 percent cut of all sales through the App Store, but publishers can offer access to existing subscribers if they provide their own authentication process inside their iOS application.



According to The Wall Street Journal, Google's One Pass will undercut Apple, and the search company will only keep a 10 percent cut of sales. But Google will also allow publishers control of subscribers' personal data, something Apple has been reluctant to do.







But Apple has also chosen to enforce a rule banning links to external websites that allow customers to purchase content or subscriptions. If a publisher chooses to sell a digital subscription separately outside of an application, the same subscription offer must be made available -- at the same price or less -- to customers who wish to subscribe from within the application.



Apple's changes have frustrated publishers who believe that the iPad maker's 30 percent cut is too high a share for content. The rules for App Store software have even led to speculation that Apple's subscription plans could lead to antitrust scrutiny from the U.S. government.



Makers of software already on the App Store that does not comply with newly enforced in-app subscription rules, such as the Amazon Kindle e-reader, have until June 30 to comply with the rules, or they could be removed from the App Store.
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Comments

  • Reply 1 of 180
    Quote:
    Originally Posted by AppleInsider View Post


    But Google will also allow publishers control of subscribers' personal data, something Apple has been reluctant to do. ][/url][/c]



    There it is! Google continues to do what's good for them while Apple does what's good for them and their customers.
  • Reply 2 of 180
    Quote:
    Originally Posted by bcahill009 View Post


    There it is! Google continues to do what's good for them while Apple does what's good for them and their customers.



    Of course, Android is just a loss leader trojan for collecting personal data and delivering ads. Meeting those goals is all that matters to Google.
  • Reply 3 of 180
    10% sounds really great on Google's part, but what is yet to be determined is will people use the Onepass for purchases? 90% of not much is exactly that. We know Apple can sell media through its purchase model. The question is, will 90% of Google sales be greater than 70% of Apple's?
  • Reply 4 of 180
    Quote:
    Originally Posted by AppleInsider View Post


    Makers of software already on the App Store that does not comply with newly enforced in-app subscription rules, such as the Amazon Kindle e-reader, have until June 30 to comply with the rules, or they could be removed from the App Store.



    Good bye Kindle, Netflix for iPad.
  • Reply 5 of 180
    Quote:
    Originally Posted by freddych View Post


    Good bye Kindle, Netflix for iPad.



    You're delusional. The install base available to Netflix is > 100 Million with iOS. They aren't going to lose that base. I could care less about Kindle.
  • Reply 6 of 180
    gwydiongwydion Posts: 1,067member
    Quote:
    Originally Posted by mdriftmeyer View Post


    You're delusional. The install base available to Netflix is > 100 Million with iOS. They aren't going to lose that base. I could care less about Kindle.



    If their margins are less than 30% they will be losing on every iOS subscription, isn't?
  • Reply 7 of 180
    Quote:
    Originally Posted by bcahill009 View Post


    There it is! Google continues to do what's good for them while Apple does what's good for them and their customers.



    Unfortunately for customers, developers hold the cards. If they don't like Apple's terms, we're the ones that get screwed by not getting access to a lot of great apps. (Darwin will take care of the shitcrap apps.)



    That being said, I doubt they'd eschew the Brinks trucks that back into their banks everyday, even with the 30% going to Apple. I'd call their bluff by checking up on the bitching developers that claim they're going to bail on the App Store; I bet they're still there in 90 days.
  • Reply 8 of 180
    MacProMacPro Posts: 18,165member
    Quote:
    Originally Posted by bcahill009 View Post


    There it is! Google continues to do what's good for them while Apple does what's good for them and their customers.



    There it is, Google wait to see what Apple does first too ..



    Plus don't forget Apple's cut is all Apple get, they don't sell / exploit the information as Google does.
  • Reply 9 of 180
    I can see Apple blinking on this one... but I don't see 10%... maybe 20%... just enough of a cut to keep a few more publishers happy.
  • Reply 10 of 180
    The irony is stark. First, Google kills off the publishers' traditional business. Now, they are being induced to take their new business to Google.....



    All thanks to the magic of ad dollars and monetizing user info, both of which Apple lacks (or refuses to monetize). Wait till Facebook and Twitter get their act together, and start to compete seriously for those same, finite ad dollars and user info. Google's attractiveness will start to sink like a stone.
  • Reply 11 of 180
    Quote:
    Originally Posted by digitalclips View Post


    There it is, Google wait to see what Apple does first too ..



    Maybe Apple should hold off on occasion to see what Google is going to do. Google can't wait forever so they're going to have to lay down their cards at some point if Apple holds its hand tight.
  • Reply 12 of 180
    Quote:
    Originally Posted by AppleInsider View Post


    According to The Wall Street Journal, Google's One Pass will undercut Apple, and the search company will only keep a 10 percent cut of sales. But Google will also allow publishers control of subscribers' personal data, something Apple has been reluctant to do.



    And now we see the REAL nature of the battle Apple is fighting. Google will be joining Apple in cutting out the reseller middlemen. The siren song for content providers is "control of subscribers data". But will they abandon the massive user base that iOS represents to go exclusively to Google? Not likely. The battle will eventually devolve to (1) who will charge less for a given content and (2) which platform gives the customer a better experience.



    Competition still exists, pronouncements of doom to the contrary.
  • Reply 13 of 180
    xsuxsu Posts: 401member
    Quote:
    Originally Posted by Gwydion View Post


    If their margins are less than 30% they will be losing on every iOS subscription, isn't?



    So by ignoring iOS users, Netflix is somehow going to reduce the fixed cost they have to pay for the warehouses, data centers, license and royalty for the contents? Yeah, reduce your subscription base while doing nothing to fixed cost is really going to help your margin. World according to the business illiterate.
  • Reply 14 of 180
    gwydiongwydion Posts: 1,067member
    Quote:
    Originally Posted by xsu View Post


    So by ignoring iOS users, Netflix is somehow going to reduce the fixed cost they have to pay for the warehouses, data centers, license and royalty for the contents? Yeah, reduce your subscription base while doing nothing to fixed cost is really going to help your margin. World according to the business illiterate.



    What? If you didn't understood it I can explain better, or I will try to do
  • Reply 15 of 180
    Quote:
    Originally Posted by Gwydion View Post


    If their margins are less than 30% they will be losing on every iOS subscription, isn't?



    Your analysis is fallacious. You are assuming that the publishers' marginal and average costs are the same.



    Perhaps an Econ 101 course is in order.
  • Reply 16 of 180
    gwydiongwydion Posts: 1,067member
    Quote:
    Originally Posted by anantksundaram View Post


    Your analysis is fallacious. You are assuming that the publishers' marginal and average costs are the same.



    Perhaps an Econ 101 course is in order.



    No, I'm asking what happens if Netflix margins are less than 30%, nothing more
  • Reply 17 of 180
    Quote:
    Originally Posted by bcahill009 View Post


    There it is! Google continues to do what's good for them while Apple does what's good for them and their customers.



    You won't think its such a good thing if you see companies raising prices by a third.



    Quote:
    Originally Posted by mdriftmeyer View Post


    You're delusional. The install base available to Netflix is > 100 Million with iOS. They aren't going to lose that base. I could care less about Kindle.



    Doesn't matter what the number is if Apple's taking all the profit. Apple's trying to take the one size fits all software model and apply it to other segments which might have different margins.
  • Reply 18 of 180
    Quote:
    Originally Posted by Gwydion View Post


    What? If you didn't understood it I can explain better, or I will try to do



    Don't bother. I think you said it well enough above. Clearly 30% is a big commission to swallow. There are clearly positives and negatives to be ironed out here but Apple has drawn the line and we'll see if someone blinks.



    A company, whether dealing solely in bits like Netflix's streaming or with legacy media like magazine/newspapers, needs subscribers but handing over 30% may be a non-starter simply if you look at the margins. They can't lose money on each customer and expect to make it up in bulk.



    But this clearly changes the whole equation. There are savings from having Apple (and the internet) participate in distribution but the big question is whether you're going to realize enough savings to justify handing over 30%. Any company would prefer less of course but there's a big negotiation going on right now. It's fun to watch from the sidelines as we ALL can watch it as it plays out.
  • Reply 19 of 180
    gwydiongwydion Posts: 1,067member
    Quote:
    Originally Posted by ddawson100 View Post


    There are savings from having Apple (and the internet) participate in distribution but the big question is whether you're going to realize enough savings to justify handing over 30%. Any company would prefer less of course but there's a big negotiation going on right now. It's fun to watch from the sidelines as we ALL can watch it as it plays out.



    In the case of Netflix, Kindle or Nook books, whichs saving can they have having Apple or Google? The distribution, hosting and advertising doesn't change, only chganges the pay processing.
  • Reply 20 of 180
    It's great that people have an option to compare for themselves and providers can reap the benefits of both if they choose.

    The more Google creates these side-by-side comparisons with Apple, the better for Apple I think.

    Because it only highlights the ways in which Apple is superior. Because given Google's resources and strategy they should be blowing Apple away in every capacity - and yet with all their copying and one-upping they can only manage to stay competitive with Apple.
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