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Apple iPad vs Google One Pass vs Amazon Kindle

As previously announced, Apple will charge publishers a 30 percent cut of subscription revenue that is sold through iTunes or in app purchases made on iOS devices. The company takes no cut of subscription revenue the publisher lines up on its own, outside of Apple's platform (such as through the publisher's online or direct sales to its established subscribers).

Apple is essentially turning the publishing industry from an ad-centric medium it has long been into a content market identical to the ones it has already set up within iTunes for music, TV, movies and apps. Apple has never supported an ad-based music subscription model, or free TV or movies supported by ads, and has only recently began monetizing free apps with iAd.

That makes Apple's 30 percent cut almost immaterial to publishers, because their iTunes subscription distribution and fulfillment costs are being largely borne by Apple anyway. The problem isn't that Apple is also taking away publishers' ad revenues, because there are no limits or revenue sharing fees placed upon the ads publishers run themselves, just as Apple makes no cut of apps that include ads from Google's AdMob, Millennial Media, or other networks.

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