Apple rolls out App Store subscription model

Starting today, publishers can now utilize Apple's new subscription billing model. The new billing model for will allow for newspaper and magazine publishers to charge a subscription fee in exchange for the customer’s access to content through iOS apps.

Publishers will be able to set their own price, as well as determine how often the subscription fee is charged, ranging from weekly to monthly to yearly. In return Apple will take its normal 30 percent of the subscription fee.

If the publisher had already had a subscription agreement outside of the App Store with a customer, they are allowed to bring that customer into the iOS app, and Apple will not require its 30 percent cut. Steve Jobs explained Apple’s philosophy towards the subscription service:

“Our philosophy is simple—when Apple brings a new subscriber to the app, Apple earns a 30 percent share; when the publisher brings an existing or new subscriber to the app, the publisher keeps 100 percent and Apple earns nothing. All we require is that, if a publisher is making a subscription offer outside of the app, the same (or better) offer be made inside the app, so that customers can easily subscribe with one-click right in the app. We believe that this innovative subscription service will provide publishers with a brand new opportunity to expand digital access to their content onto the iPad, iPod touch and iPhone, delighting both new and existing subscribers.”

Apple had announced the subscription service when News Corp.’s “The Daily” [iTunes Link] was revealed. The Daily will utilize digital subscriptions through the App Store beginning March 1st based off of the February 28th expiration date for the trial subscription.