It borrows heavily from Apple's
iTunes Store model and makes use of Apple's in - app purchasing system.
Not exact matches
Over the course of 2001, as global markets fell and the world headed into recession, Apple launched the
iTunes music software (in January), the Mac OS X operating system (March), the first Apple retail
stores (May), and the first iPod (November), a 5 GB
model that Apple bragged would hold 1,000 songs.
Apple initially contemplated selling e-books through the existing wholesale
model, which was similar to the manner in which Apple sold the vast majority of the digital media it offered in its
iTunes store.
And look at their distribution
model - only via
iTunes store, and nowhere else?
The
model of modifying the file to
store application metadata is pretty established for other media types — especially mp3 files, the
iTunes precedent.
This shift was caused in large part by the entry of the iPad (which I am still not convinced will be a popular place for people who actually buy and read e-books) and Apple's embracing of the agency
model (just like in their
iTunes Store and App
Store).
Apple's strategy with its iPod and
iTunes store has served as a
model for the Kindle and other ebook makers.
The company was already using that
model for both its App
Store and its
iTunes music and video service.
His Shatzkin Files have been chronicling the changing ebooks retailing landscape wrought by the agency
model ever since Apple added ebooks to the
iTunes store and demanded all publishers it works with change to agency pricing — thereby allowing Apple to sell books on a level pricing field with all other e-tailers.
In a recent email to customers, it promised to continue its current business
model in the wake of rumors that Apple will terminate music download purchases from the
iTunes store within the next two years.