In a venomous blog post, a startup called BeamItDown Software says it’s going out of business, and squares the blame entirely on Apple’s in-app purchase policy.
BeamItDown’s iFlow Reader, a digital reading app for iOS, relied on e-book sales for revenue. But because Apple takes a 30 percent cut of anything purchased within an app, and e-book publishers only give 30 percent their revenue to the book seller, iFlow Reader would actually lose money on every book sold.
“We put our faith in Apple and they screwed us,” BeamItDown’s blog post says.
BeamItDown may not be the last victim, either, because the policy that caused this small company to go out of business may soon be unavoidable for major e-book players like Barnes & Noble and Amazon.