Google undercuts Apple in publisher revenues dash

Google has undercut Apple by releasing a web-based billing system for publishers, just one day after the Jobsian outfit unveiled its own 30 per cent subscription model. Mountain View has dubbed the service 'One Pass', but anyone currently attempting to sign up to it might hit an interwebulator roadblock: at time of writing, …

[Neil Greatorex]

I suspect the cover price will remain the same

Regardless of the intermediary.

Having said that, however, I think I will buy my ebooks through Google; as more money (though still an insignificant proportion of the cover price) will go to the author.

[Anonymous Coward]

Not based on past experience I assume?

To date, Google has shown little more than contempt for content providers, and is the last company I would consider if I was keen on reimbursing authors. I'm not too keen on having Google peering over my shoulder all the time while I read either... it's a bit like having Phorm as an ISP.

[Ammaross Danan]

BS

Google only taking 10% means more money goes to the true content provider. 10% is still a hefty amount for doing no more than just facilitating a transaction, but it's far closer to the realm of palatability than Apple's 30% tax. With more money going to the content provider, the actual author may (likely not) see a small bump to their royalty.

[danny_0x98]

Whoa, Whoa, Whoa

Are you sure that the publishers hold the authentication data? I would expect Google to keep that and the 10% is for bandwidth, authentication infrastructure, and allowing publishers to offer a better value.

[David Simpson 1]

Terrifying

"In other words, Google can farm out subscriber data - such as names and email addresses - to publishers"

So just like subscribing with the publisher directly, how terrifying !

[inverse137]

...then don't buy from apple.

This isn't overly complicated....

If you don't like the payment structure then don't post your app on Apple's webstite. If there is no content for the iPad then no one will buy iPads. See how this works?

But no....the American way is to bitch and whine and then do what you are told.

I, for one, would jump to Android in a heart beat if Barnes and Noble or other content providers said, "enough!"

Also, if they pass the cost onto consumers buy increasing content cost I will switch.

Righting a sternly worded letter will have NO impact at all. Apple will hardly blink at being called a doo-doo head as long as developers continue to put apps on the site and people continue to buy them.

I beleive the old saying is: Talk is cheap...

[Ammaross Danan]

The title is required, and must contain letters and/or digits. (previously (untitiled))

"But no....the American way is to bitch and whine and then do what you are told.

Also, if they pass the cost onto consumers buy increasing content cost I will switch."

I think your second sentence was "the American way," so likely expect an across-the-board bump to content provider pricing. Likely not a full 30%, but definitely higher than the 10% Google is charging. THIS is why everyone is whining: they buy a Droid-based platform (or even the eReader from the company) and still have to pay an Apple Tax because iFans can't live without the new shiney.

[NorthernSands]

This is what worries me...

Your point is something I've been thinking about; if content providers have to increase charges to cover the 30% apple app store subscription charge, they will have to increase costs for their web-based methods of subscribing as well. Thus penalising anyone who wants to subscribe, idevice or not.

How much do these content providers want the ios demographic? Will they hike prices by up to 30% at the risk of losing subscribers not on an idevice (and possibly a fair amount who are)? Or will they keep prices the same, make a loss on each iapp subscription and try to make money elsewhere? Increase ad charges / increase the number of ads? Reduce the content?

Maybe there's a loop hole that the content providers can use. 30% instant rebate if bought on-line? Buy from our website and use this special offer code?

[Levente Szileszky]

RE: don't buy from Apple

"I, for one, would jump to Android in a heart beat if Barnes and Noble or other content providers said, "enough!""

Umm FYI they DID, long time ago - Nook Reader is available on Android, PC, Mac, kitchen mixer, you name it. Besides books you can read your weekly magazines on any platform, without ever having to deal with Apple.

Of course, Amazon did it with Kindle Reader even before BN came out with Nook so I really don't see why would anyone wnat to go with Apple's junk-quality iTunes sans usual iTards eg actor-writer-producer/busboy...

[Miek]

IMHO

To me this is not just an undercutting of prices but a demonstration of a company that wishes to encourage competition and has both the User's and the Publisher's interests in mind (and obviously Google's interests).

[Dave Liney]

It's optional

Unlike Apple I don't see Google saying you have to use their system. Linking to a website to take customer's money is fine but if you want the simplicity of single sign on through the user's Google account then you pay 10%.

[Anonymous Coward]

not google checkout...

Has Google fixed the "cannot pay for things priced in USD with a UK debit card via Google Checkout" problem yet? or the worse problem of causing foreign transaction fees to be charged for USD transactions on UK credit cards?

Why not try to get the basic stuff working first before moving on to bigger plans?

[blcollier]

This is the title

Are you sure that isn't your bank adding a fee for transactions in foreign currencies? Most banks levy fees on transactions processed in anything other than Sterling - even if you're still in the UK when making the transaction (i.e. buying online). It doesn't matter who you're buying from; you could be buying from Google or Best Buy, but you're still likely to get slapped with a fee if it's in USD.

[Nick Ryan]

10%

10% - not too bad considering that (for low volume merchants), it's not significantly higher than the levies imposed by credit card companies but with the addition of providing the infrastructure as well.

If you're a larger organisation or have different payment profiles / risk factors you can of course get rather better than 10% from credit card companies, but for low value transactions it's probably not too bad.

Better than 30% anyway - intriguing time to release it so shortly after Apple though.