What do these four music subscription services have in common? Each company survives on monthly subscription revenues. Each one has an iPhone/iPad app that is prominently featured on its home page. Each one offers a free trial that they hope you’ll love and that you’ll convert to a paid subscription when the trial runs out.
And under Apple’s new subscription rules, each one will soon be forced to start paying 30% of its revenue for each of those easy, one-click subscriptions it gets through an app on an Apple device.
In short, each of those four services has just been torpedoed by Apple. Each one is taking on water. The question now is deciding in what order they go under.
Where do people listen to music? On the go. Even if you initially sign up for a free trial on the web, you’re likely to use the subscription on your phone. As a Rhapsody spokesperson told me last December, “Mobile is everything, and people are increasingly using their mobile devices like Swiss army knives—buying an expensive new (closed) device limits the addressable market. In fact, it was being tied to certain devices that posed challenges to Rhapsody in the past.”
This is a completely new challenge. Yes, Apple says it won’t take a cut if you place your order elsewhere. But they’ve made it inevitable that most of those subscriptions will come from the app.
If you decide to convert a trial to a paid subscription, where are you going to do the transaction? Will you use the easy one-click button on your iPhone? Or will you open your web browser, navigate to the sign-up page, and pay the exact same price after you enter a page full of details including your credit card number, CVV code, and billing information, and then go back to your iPhone to complete the process?

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