A different thought on Apple’s in-app subscription rules

Posted by on February 15, 2011 · Leave a Comment 

So, now that apple has released their official word on in-app purchase requirements, providers are essentially going to have to (or choose to) face reality and figure out how to make a 30% tariff off the top of a potentially significant portion of revenue into a workable business model. It’s a long shot, but if companies actually started to increase their exra-app price in order to allow them to raise their in-app price to something reasonable, we could start seeing more sustainable content fees across the board. Sure, Apple would be sucking down a lot of that increase for apps that have a majority of subscription holders on iOS devices, but could a corresponding extra-app increase in revenue offset and even exceed this new “Apple tax?” This could be an opportunity to establish that there is a lower end to what content providers can charge and still provide a worthwhile experience, and it seems to me we’ve about hit it. I’m sure Netflix, rhapsody, newspapers, magazines and more would love to be able to add $1-$2 to subscriptions across all channels, but be able to point their finger a “greedy Apple” as the reason. I’m not sure this applies the same way to ebooks and 1-time purchases, but anything to help raise the value of content in consumers’ minds is positive. (especially if we are to pave the way to a less advertising-driven economy) Maybe it’s seeing a silver lining where it isn’t, but I like to think I’m just an optimist.

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Apple TV eBooks?

Posted by on February 12, 2011 · Leave a Comment 

Photo Credit: Flickr User nakagawa

All signs are pointing to another app store soon – one with apps designed for the Apple TV. Google has promised apps for it’s Google TV devices (the future of which seems a bit uncertain) and we have several TV manufacturers who build “apps” into their TVs which do simple things such as show the current weather, stream media, and even connect to security cameras. But the Apple TV has an opportunity to cash in on a rich developer community already creating hundreds of iOS apps every week, an excellent on-screen experience, and a very affordable price point.


While games are a given on the device, as are simple info apps (like the aforementioned weather app) I wonder what other apps we will see, and how us simple humans will interact with them. In particular, I am interested in the possibility of deeply interactive book apps and how they may function in this context. I can imagine families gathered together around the large-screen display sharing the active experience of a made-for-tv ebook. While I imagine that reading large quantities of text on even a 60″ plasma from the couch would be unwieldy, ebook read-along features could go a long way to remedy this. I am fascinated by how a simple device like the (exquisitely designed) 7-button Apple Remote could be used to control and interact with these ebooks. I’m even more intrigued with the thought of connected apps that allow the use of an iPod, iPhone or iPad as a control surface or supplemental display for Apple TV ebooks (and Apple TV apps in general).


I’m exited to see what happens in the coming months with the Apple TV. I am hopeful that we will see an app store for the device, and I’m really excited about the innovations that may come with it. I know I’ll be thinking hard about my first Apple TV app.

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DINO’s Tips for Making the Most out of Book^2 Unconference

Posted by on February 11, 2011 · 2 Comments 

Aaron and I are on our way to Book^2 Camp in New York. It’s an “unconference,” an event that has a participatory style of generating bottom-up content from the attendees rather than providing top-down, pre-determined content. In the tech industry this is a very common format. After talking with a couple of our clients also attending, I realized that to people used to “normal” conferences, the notion of unconferences can seem really, really strange.

So in advance of the Book^2 unconference, and in the spirit of open participation that defines this format, I thought I’d jot down a few notes and approaches if for no other reason than to prepare myself for the weekend.

The Three Words

Usually, unconferences begin with an opening session where organizers set the framework for the day, thank sponsors, point out restrooms, etc. Very quickly, attention returns to the audience (i.e. you) before we sort the day’s agenda of sessions (more on that in a bit).

A very common ice-breaker is for everyone (yes EVERYONE) in the room to stand up, one at a time, and say, in three words, a little about themselves. Mine might be “Quality Creative Technology” or “iPad Book Maker” or “Breakfast Taco Enthusiast”– you get the idea. Inevitably, some people will be clever or even jokey with their words (let’s face it, 30 minutes of people reciting bland business card titles would not be a great start to the event).

The point is for you to listen to the other participant’s words as a way to identify individuals you may want to connect with during the day. Three words limits introductions to a managable time.

In practice, because people going to unconferences tend to have a variety of interests and even job descriptions, they are often too wrapped up in trying to decide on which three words they want to wear that day and don’t really pay close attention to other people. Ergo – People talk, but they don’t listen.

My tips:

  • Decide on and write down your three words ahead of time (at home, even, where you can think about it) in big bold letters on an index card
  • When it’s your turn – stand up, face as many people as you can (i.e. you may be in the middle of a row so people will be on all sides of you), and speak loudly (if you turn heads with your volume, you did it right)
  • LISTEN to other people’s words and try to identify 2-3 people you will walk over to and introduce yourself to IMMEDIATELY after the 3 words session. (Bonus hint: These 2-3 people may be interested in organizing a session with you).

(I don’t know if Book^2 will use Three Words — it’s a pretty common one, but assume you’ll need a pithy intro of some kind)

“A Conference with No Content?”

When you pay thousands of dollars to attend the typical industry conference, you expect a lot in the ideal case – hundreds or thousands of attendees, side field trips, rigid schedules w/ (mostly) deeply vetted (and well compensated) experts offering advice or ideas that reinvigorate your work — heck, maybe a fancy dinner w/ celebrity keynotes.

While this is also arguably the case for “normal” conferences, I cannot stress enough that you will get out of an unconference no more than what you put into it. Your ROI of participation pays back many times over in the value you derive from the experience.

Be present. Be proactive. Be ready to talk. Ask questions.

There will come a time during the event where you will have the opportunity to propose a session on the agenda. I highly recommend making a suggestion for something that you are genuinely interested in LEARNING about and not PREACHING about. Find like minds around you and band together to talk.

For what it’s worth, at Book^2, DINO is likely going to propose a panel discussion with ourselves and 2 other smaller, indie publishers in the iPad/tablet storybook space. We intend it to be an opportunity for us to share some newly-earned wisdom as smaller, scrappy studios facing the challenges of trying to develop premium content on limited budgets.

Here’s a great resource that has more tips about preparing sessions: Scott Berkun: How to Run A Great Unconference Session

Avoid Energy Vacuums

It’s my observation that unconferences attract smart, motivated people with really interesting things to say. Here’s something that nobody ever mentions outloud, but I wish they would:

It is quite likely that you are the expert at something. The people around you are are also experts at things, and dare I say, collectively smarter than you on most things. Nothing ruins an unconference session faster than a blowhard who insists on dominating conversations. Make no assumptions about the skill levels or interests of your audience or you will be wrong.

And when you DO end up in a room with an Expert who is insisting on proving how much he or she knows, you are both empowered and requrired to “vote with your feet.” (i.e. walk out and go find another session that better allows you to participate).

Like most conference-like events, sometimes the better content happens in the hallway conversation, anyway.

Putting Sales, Business and Marketing in Perspective

Make no mistake: an unconference can be a fertile place to generate very qualified prospects for your business. DINO is going to Book^2 with an intent of meeting potential clients, no doubt.

However, unconferences are a terrible place to sell your goods or services if that’s your only motivation. You’d be better off just sponsoring the event or spending your time at a more appropriate venue like a tradeshow floor.

If you have a product or service you are trying to promote, you’ll have far more success if you lean towards transparency, conversation, and participation rather than blatant pitching. For example, while it’s a good idea to open your session with a brief description (30s or less) of your background and why you were interested in leading a particular discussion, it’s really bad form to then spend 20 minutes showing product demos and sales slides. A better approach might be to lead a session that shares best practices as you were developing your product.

I think, unlike a lot of networking events and tradeshows, you’ll get further if you come from an extremely genuine place. Have conversations with people with the idea that you are looking for relationships and not clients and you’re on your way. SHARE OPENLY. Now’s the time to be extra generous with your knowledge… it will pay itself back, I promise.

Having Conversations

This post isn’t meant to be a treatise on how to do effective networking. I will say that all those lessons (ex. listen more than you talk, establish rapport, don’t be selling – be forming relationships) apply. The tenor of the event will be one of openness, optimism, and inclusion. Use whatever personal style works for you, obviously, but I think the casual nature of an unconference tends to reward gregarious conversationalists rather than aloof experts & rock stars.

Bring a stack of business cards and prepare to ask and answer, “What is the coolest project you are working on right now?” rather than the closed-ended “what do you do?” (Bonus hint: I like “what brings you here today?”).

Other Useful Guides

Aaron and I are SO looking forward to meeting you. Our pictures are on our About Page. Please do come say “hi” to us.

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On the design of a simple object

Posted by on February 11, 2011 · Leave a Comment 

My life, for better or worse, revolves around Apple products. I use a MacBook Pro to run Xcode to create software for iPhones, iPods and iPads using an Apple Aluminum Keyboard and Magic Trackpad. I test that software on my many models of iPhones, an iPod touch and an iPad. I keep track of my schedule and conduct nearly all my personal and business correspondence on my iPhone and iPad and use those same devices to enjoy a variety of media at home via my Apple TV. Each of these products has many positive features – some bordering on magic – and each has a bevy of often frustrating limitations and shortcomings. But they are all, in general, well-designed, fun-to-use, and exciting products. So it’s no small praise when I say that one of the best-designed Apple products that I have laid hands on recently is the new Aluminum Apple Remote.

Photo Credit: Flickr User Princess Anrchist

The Aluminum Remote may be among the cheapest Apple products currently for sale, but there is an unexpected and truly surprising amount of attention that has gone into its design. I dismissed it at first as simply another cosmetic redesign with the goal of bringing it up to date with the black-and-aluminum scheme of nearly all the rest of Apple’s lineup. However, this was not just a mere cosmetic change – the ergonomics of this little device are something to marvel at.

First off is the obvious feel of the remote when I first picked it up. There’s heft there that I wasn’t expecting after being used to the older white Apple remote for so long. The aluminum remote feels good in my hand. It has the weight, and it has a size that, even in my larger-than-average hands, allows me to position it comfortably. The remote fills my grasp unlike the previous plastic one. It is long enough to give all my fingers purchase on its form and has lost the “toy” feeling of its predecessor.

But it is not just the heft and size of this device that has improved. The usability is nothing short of amazing. I simply do not need to look at this remote to use every feature it provides. The donut navigation ring is large and raised above the surface significantly and surrounds an action button which is subtly concave which gives my thumb a perfect home resting spot. I can feel very clearly when I move over the directional ring and with the divot as a reference point in the middle, I never accidentally click in a direction I didn’t intend. Having the action button located under the resting location of my thumb makes it easy to select items on-screen without having to look down to confirm I’m using the correct button. This concept extends to the additional buttons included on the remote as well. Both positioned within easy reach of the directional ring, Apple has done a phenomenal job of designing the buttons so that my fingers alone, without help from my eyes, can find them. The menu button is concave similar to the action button and running my thumb over it, there is no mistaking its location. The play/pause button (which functions identically to the action button on most Apple products with the current software) is flush with the surface of the remote, but there is left a subtle ridge at the edge of this button which becomes obvious when I brush my thumb across it. I know where all the controls of this remote are without a look, without a thought. It is control that melts into the background and becomes an extension of me.

Photo Credit: Flickr User Stuart Bryant

Even the battery door, positioned directly on the bottom of the remote is well designed. It is easy to open, cannot go in wrong, and is easy to handle. Since the entire remote tapers to the long edges, the bottom is curved. When closed, the battery door is flush with the body of the remote, but when turned 90 degrees to open, it’s bevel is out of alignment and the cover becomes easy to grasp between my thumb and forefinger and is not at all difficult to handle or to replace. It may sound a simple thing, but having replaces batteries in small objects like this for many family members and friends who have limited manual dexterity (or eyesight!) this is one of the most elegant features of the new Aluminum Remote. Overall, this was a surprising device for me to find so many small things that were just an utter joy to use and to feel and to notice. This is the kind of attention that should be paid to all our product designs across industries. I may have dismissed this little design marvel when I first saw it, but it has found itself among my favorite objects I encounter every day.

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Concerning the business and ethics of Apple’s in-app purchase requirements (UPDATED)

Posted by on February 9, 2011 · 1 Comment 

News Corp recently introduced The Daily to the iOS world. Sony tried to publish an eReader app at about the same time. Apple blessed the first for doing everything right, and banished the latter for not pleasing them. It’s been long-standing policy (in that anything related to the App Store is long-standing) that any purchases of content allowed within an iOS app use only Apple’s in-app purchase system. They get their cut, developers get to use an established payment mechanism, and users have some modicum of protection with respect to their financial information. However, as Apple was issuing this reminder to the developers of apps, they let loose a much bigger bombshell. Content purchased outside of an app (like a pre-existing subscription or ebooks purchased on the web) can no longer be made available in-app.


[So here's the way we seem to understand it now: If an app offers access to paid content, that content must be offered via Apple's in-app purchase. It may also be offered for purchase via the web or other mechanism, but if it's paid and available in an app, you must have the option to buy it via in-app purchase.]


I see two very significant problem areas with this further restriction in the ever-darkening walled garden that is the iOS market. One is business-related, one is a matter of pure ethics.


The business case is one explored elsewhere in some depth and from several perspectives, but in a nutshell, content must get a lot more expensive to justify selling something through a mechanism that takes 30% off the top. Margins on some products such as game levels or subscriptions to large information sources may allow for an instant 30% off the top, but when the realities of the ebook marketplace enter, it’s simply not feasible. According to the Washington Post, Amazon sees an operating margin of 15-20% for ebooks. Amazon is a well-oiled book machine and even assuming this margin is a little better now (the data is from 2008) it’s very, very hard to imagine that Amazon, let alone many other ebook sellers, would be able to take 30% off the top and still make a penny. Many of us wondered how Apple was going to treat ebook readers in the app store once iBooks was launched. I think we finally have our answer and it’s a bit insidious if you ask me. Also, it’s important to note that, unlike the apps themselves, Apple does not host purchasable content for apps on their servers. It must be hosted on the publisher’s own server, using their own bandwidth so there is much less value provided by Apple than for full app purchases. There are certainly transaction fees Apple takes care of with money handling, and the ease of not needing a merchant account or payment gateway is nice, but factor in Apple’s policies regarding actually paying devs (which is worth an entire additional post) and the exorbitant percentage cost and the value is greatly diminished.


I also wonder how things such as paid web-site access with existing subscriptions or digital extensions of physical subscriptions will work in this new world. Since in-app purchases can’t be used for physical items, a newspaper can’t sell a subscription to their physical paper in-app. But many offer access to paid content online and via apps for their physical paper subscribers. With the new policies, it seems that will be forbidden since parity between in-app purchases and alternate channel purchases cannot be maintained due to Apple’s own policies. How will my purchase of something via in-app be synched to my apps and devices in other channels? I may have the option to buy a Kindle book on the web, a physical Kindle or via in-app on iOS, but if I choose to buy it in-app via Apple, do I have any mechanism to sync that purchase up to my Amazon account or will devs have to roll-their-own?


Business issues aside, I think there is a much bigger potential problem with this new policy. Apple tries to keep the app store as clean and free of anything edgy, controversial or “objectionable” as they can. There are understandable arguments for this, though my personal feelings differ. However, if Apple is suddenly given the go/no-go decision over not just apps, but content available in those apps as well, we could be looking at an extremely difficult ethical position not just for Apple, but for those who choose to make potentially objectionable content available through any source. For instance, if a particular graphic novel, say, is available for purchase via Marvel’s web site, if that content can be viewed in their iOS app it must also be purchasable in-app via Apple. What if that graphic novel contains nudity or depictions of violence, or deals with sensitive subjects like sexuality or politics in ways that Apple doesn’t like? If Apple rejects the content and will not allow it to be purchasable in-app, can Marvel still make that content available for purchase elsewhere and viewable in the iOS app? Does the entire world of iOS become some squeaky-clean parody of the real world? And how long until we also find that Apple requires in-app purchases to be priced the same as alternate channel content purchases? If I were Amazon, all Kindle books purchased in-app would be 30%, 40% or even 50% more expensive than via other channels. Discouraging customers to make their content purchases in-app may actually be a good move for some apps.(UPDATE: unsurprisingly, this is forbidden by Apple)


As far as I can tell, there seems to be no absolute answer as to whether Apple reviews in-app purchase content in-line with the app store submission guidelines or whether they apply the iTunes/iBooks “standards”. (Apple claims not to review books or music and encourages you to use those media if you want to incorporate potentially objectionable material.) Indeed, I can’t find verification as to whether the in-app content is reviewed at all. Whether it is currently being reviewed or not, once Apple is taking a cut of a significantly larger pool of content, I can absolutely imagine it a strong possibility. Apple seems to want to stay out of the loop when potentially legally-encumbering actions are taken (note their policy on charitable giving via app) and actually *selling* what may, by some, be considered objectionable content can be a big legal encumbrance in some jurisdictions. I can’t believe that they won’t protect themselves and that could mean refusing to carry specific content.


This is a terrible move on the part of Apple and continues a disturbing pattern of Apple tightening and restricting their world more and more, making everyone play by a very tight and innovation-stifling set of poorly defined rules. These are not the actions of the Apple that broke into the mainstream a few years ago by giving consumers something they wanted. These are the actions of a company continuing to reduce choice, stifle progress and greedily chomp up every penny they can without regard to what is right or even intelligent behavior.

UPDATE: From Apple’s developer agreement: 2.5 You may not use the In App Purchase API to deliver any items that contain content or materials of any kind (text, graphics, images, photographs, sounds, etc.) that in Apple’s reasonable judgment may be found objectionable, for example, materials that may be considered obscene, pornographic, or defamatory.So, it seems the iOS world will be that clean parody of the real world after all.

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