MG Siegler back for more after his last post got some interesting responses:

Apple is betting that the allure of being tied into their incredibly efficient iTunes payment ecosystem (along with its 100 million + accounts tied to credit cards) will outweigh the downside of having to pay them a 30 percent fee. The same 30 percent fee they currently take from the thousands of app developers collectively making billions of dollars off of the App Store. And the same 30 percent fee they currently take for all other types of in-app purchases.

This is a grand plan for someone who is making a new app or service, but not so much for existing services. If they keep prices the same they will see their revenue’s decrease for every user that uses the App Store. People like Siegler and Ben Brooks are banking on them making up more than this difference by adding tons of subscribers. But if every single subscriber moves to the App Store, revenue would drop by 30%, but they would need subscriber base to then increase by 30% just to make the difference.

(via The Brooks Review)