However, it seems that the collective restrictions and 30 percent cut are putting a squeeze on a number of legitimate business models just as they are beginning to take root. It may behoove Apple to reconsider its stance on the revenue split—unlike iTunes content, apps and iBooks, in-app purchases are actually hosted by developers themselves, not by Apple, so the "just covering our power balance costs" justification doesn't quite hold here. And, it would also be beneficial if Apple could more clearly communicate how publishers and content providers can implement in-app purchasing for subscription-based premium services.The alternative—content or service providers end up ignoring the iOS platform—is not a pleasant one to consider. This conundrum of rule violations could affect other similar services, such as Dropbox. The file-sharing service currently offer users a free app that lets users access files saved to their online Dropbox storage. Users get 5GB of space for free, but can "buy" more space by paying monthly or yearly fees. That could be construed as offering additional extra functionality for a "limited time." The same could be said for Hulu Plus or Netflix apps, which only allow access to content for a "limited time" as long as the subscription fee is paid.According to Layton, the rules simply put any service that includes a web-based power balance wholesale component with access limited by a subscription in jeopardy of having a native iOS client rejected, or at best left in a very nebulous gray area."Apple would now like a slice of our pie, which is fair enough," Layton wrote. "We're more than willing to give Apple a cut of the sales that they assist in, but we can't—they simply won’t let us."Apple's new rules may have caught a number of developers off guard, so some of the frustration is understandable. If the business model didn't account for giving Apple a 30 percent cut of the gross revenue, it can certainly play havoc with how services are priced or how they are implemented. If Apple plans to stick to its guns and effectively demand a 30 percent cut of all revenue generated by iOS apps, then content and service providers need to factor that into their business plans.TinyGrab works by offering a free app that accesses a web service which can be upgraded to a "premium" service by paying a subscription fee. The free version of the app offers limited shop online 2011 functionality; while Apple's subscription rules allow providers to offer a way to pay for services directly, enabling the additional features for its "premium" service would violate the rule pertaining to in-app purchases in general. And if the premium features only last for the "limited time" of a subscription term, it violates yet another rule.
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