Is Apple subscription plan evil?

For two days, the technology corner of the web is consumed by a story: Apple's new subscription rules for the IOS ecosystem - that is, the iPad and other devices from Apple.

Why? The rules seem easy to reach than magazines and newspapers apps, changing the way almost all the content flowing through Apple's App Store and apps. What was once free for app developers will no longer be free. And it has some wondering whether Apple is evil.

The easy answer is no, Apple is not evil. That is, unless the development of new models of industrial dislocation and a money trail of evil. If so, then Apple is the devil. It is very good at making money.

The essence is this: Apple has said it plans to offer app developers the ability to service its new subscription billing into their applications. In return, Apple has a 30 per cent of all sales in this way. It's the same percentage that Apple has cut the paid app sales.

Furthermore, Apple will only cut 30 percent of those subscriptions as subscribers to sign up for them in the app itself. When a user signs up for a subscription outside the app (via a different mechanism that a company can offer if they wish), Apple takes nothing.

Essentially, this is a bet by Apple, that his system is so good, users will choose to use it on an out-of-app experience of a company can offer. And that's a smart bet. Apple's system comes with direct access to over 100 million active accounts linked to credit cards. This system will provide one-click purchase of subscription services.

But here is where things get a bit hairy. Apple is also required companies to use its registration system to offer prices at or below subscription prices they offer anywhere else. And if those companies do not offer subscriptions anywhere else, they now have to offer in the app too - again, using Apple's system. A system that will give Apple a 30 percent cut.

Things even more hairy when you consider that Apple plans to any app that digital goods outside the app to also offer the opportunity to sell them within the app sells power through the in-app purchasing system Apple has built. It could mean that an app like the Amazon Kindle Kindle book reader would have to sell through the app. Amazon was doing OK, except that Apple will sell 30 percent of all to get.

These new rules will be many developers between a rock and a hard place. So why is Apple doing this? There are three reasons, all related.

Apple's new rules are intended to control the app ecosystem is strengthened as a better user experience and make money.

Tightening control of the Apple ecosystem can offer new services, such as subscriptions. Apple is smart enough to know that if the publisher is working with this new system to attempt to offer lower prices elsewhere, the whole thing will fail. And if some publishers try to in-app system to bypass, it will also cause the whole thing to fail.

A system in harmony, even a closed, will provide a better overall user experience. Currently it is a nightmare to register and pay for online content. Apple's system allows streamlined. But it must be established across the board.

And those two things lead to a situation where everyone, not only Apple is able to make money.

If you look at it that way, it makes sense.

But many developers are upset because they have been used for other purposes (albeit more complicated) ways for customers to pay for services outside these apps, then bring them back into the apps for free. These changes mean it's time for a wake-up call.

But here's what does not make sense: Apple's 30 percent of the money across the board. It's just not economical for an app like Rdio music subscription service, access to streaming music for a monthly fee offers to give Apple 30 percent of that amount. That would be the margins into negative territory.

The same apparently is true of all music subscription-based apps and even great content apps like Netflix, Hulu, and yes, Amazon.

The 30 percent cut makes sense for newspapers and magazines that are badly needed and this model can afford. But these apps have all the content from elsewhere, which is an expensive thing to do licensing. There is no way they can afford to lose 30 percent of their income.

And think about other companies that iPhone apps like Comcast offer. It offers a subscription service, it does, now have the option to buy it through the app and give 30 percent of sales each month to offer to Apple? That makes no sense.

So where does that leave us? It leaves us with a situation in which Apple will need to adjust the rates for the various types of cases adjust. And when that happens, the outrage over the changes die.

Apple has the right to control the ecosystem in a manner that makes some money and provides a better user experience. But the economy must be meaningful, or both developers and users will leave.

This has nothing to do with Apple are evil, and everything to do with finding the right balance to the next disruptive system to implement.