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Think of it this way, is giving Apple 50% of your subscription revenue any worse then giving Google and Facebook 70% of your advertising revenue? I think the sad consequence of the economics of digital media is these shares are likely the same for many, and Apple did the math.Permalink On twitter.com
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Mood -4 🙁
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It's shitty to hold publishers over the barrel, but honestly it's a better deal than most small / medium media companies get out of their display units and the accounting is a lot clearer. Most display ads only end up with 40% of associated revenue ending up in publisher pocketsPermalink On twitter.com
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Mood -1 🙁
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Depending on how they're allowed to price their subscription, they may make more money per user, who knows. The real question is if it eats into existing users or brings totally new subscribers.Permalink On twitter.com
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Mood 0
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Anyway, thanks ad tech for making it a better deal for some publishers to cede 50% of their revenue from subscriptions than to try to run ads on their site. That's not a great place at all.Permalink On twitter.com
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Mood +7 🙂
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I mean this is basically the same deal as FBIA, Snapchat, Facebook Watch and maintaining a Facebook page. pilhofer/1096037680528478208?s=19On twitter.com
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None of this is good. But it is worth noting that Apple's proposal is not out of nowhere in terms of approach or pricing structure.Permalink On twitter.com
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Mood +5 🙂
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It's just blunter and more obvious about it.Permalink On twitter.com
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The problem is less Apple "twisting the knife" more that the media has already been stabbed multiple times and keeps asking to be stabbed more while pushing out press releases about how great it is to partner with knife wielding maniacs.Permalink On twitter.com
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Mood -3 🙁
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Apps were a mistake. Once we gave over to two big tech companies the portal to the internet and accepted them sticking their own marketplaces and rules in front of them we made this sort of thing inevitable. We didn't give away the news for free, we gave away the internet.Permalink On twitter.com
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Mood +1 🙂
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Permalink
On twitter.com
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Mood 0
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It wasn't like we didn't see this coming. Chronotope/199511425641754624?s=19Permalink On twitter.com
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Mood +2 🙂
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Everything repeats. No one learns.Permalink On twitter.com
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Mood -1 🙁
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Anyway, this is the world we let ourselves be pushed into. I think publishers don't have a great choice here, but honestly it's better than some other options. The marketplace needs to be fixed and Apple subscriptions really doesn't have a lot to do with it one way or the otherPermalink On twitter.com
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Mood +5 🙂
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That said, Apple could have done a lot more and offered a better price simply to seem less villainous for nice PR. I know capitalism means maximizing the money, but they sure have a lot of it already. I understand this is basically asking for charity, but seriously.Permalink On twitter.com
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Mood +5 🙂
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I was thinking this is more dangerous for them then they realize, because they could easily kick off a war on pricing by aggregation apps, but then I realized they would get a cut of that too, so they don't really care.Permalink On twitter.com
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Mood -3 🙁
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It is the same thing for them as it is for Facebook, or Google, if you're the gatekeeper of the Internet for a huge swath of the population than any deal will make you more money because even the competition has to go through you.Permalink On twitter.com
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Mood +1 🙂