Apple “In App” purchase micropayment scheme – more to it then meets the eye?

I was just thinking about all the hoopla surrounding the impending iTablet launch from Apple, and how Apple is going to do to eBooks what they did to Music (as the pundits are claiming).

But the truth is that the book publishing industry is far different the music industry. The book publishing industry is far more chaotic and less structured than the music industry. Also, there exists other titans like Amazon, B&N and others, who have pioneered a lot of the hardwork required to get licenses to ebooks, crafting ebook standards and investing in ebook infrastructures. It does not make sense for Apple to re-invent the wheel and muscle in on the ebook market this late in the game.

But the fact is the current method to buying ebooks on the iPhone is less than desirable. On the Kindle for iPhone, one has to buy the book on the Amazon site and then force a download to the iPhone.  Same for B&N. Other ebook publishers had to resort to creating ebooks as individual apps.

But now that Apple has introduced “In Apps” purchase, theoretically any ebook publisher can now modify their ebook reader app to allow “In App” purchase of the ebook content within the ebook reader app, allowing for a more seamless user experience. Sure they have to give a cut to Apple (where they previously would steer the user to their own website and keep all the revenue to themselves).

Looking at the way Apple has been pushing “In App” purchase, it seems they were meant for a lot more than just for buying virtual goods. In fact they are just perfect for books, comics, manga, magazine subscriptions or just article, or any other digital content imaginable.

I believe Apple is setting up the iTablet to be the ultimate digital consumption device. The “In App” purchase was the one remaining piece left, and it is now in place. The Apps store already has a very viable ecosystem of content publishers. But imagine if you were to allow individual smaller publishers to create, publish and monetize their digital contents directly on the iTablet.

For example, in Asia, there are literally thousands of comics and manga writers/illustrators trying to find an outlet for their content, and make money out of it. Publishing on the web is still out of the question due to a lack of established digital content aggregators with a micropayment system. Apple with their iTablet and the Apps Store will give them access to another larger format of the existing platform, and letting them monetize their content in a more direct and secure way.

If this indeed pans out, I believe Apple may be about to create a Global Cottage Industry of digital publishing soon.

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