Google One Pass undercuts Apple's subscription service

Google takes 10 per cent commission against Apple's 30 per cent...

Google CEO Eric Schmidt has unveiled a new subscription service, Google One Pass, which allows users to pay for content accessible across multiple devices including laptops, smartphones and tablets.

The announcement comes just a day after Apple launched a similar subscription service for the Apple App Store, which lets users subscribe to web content via iTunes.

Both subscription services provide users with a single sign-on and allow publishers to set their own prices. However, the major difference between the two lies in commission rates, with Google taking 10 per cent compared with Apple's 30 per cent.

Google has challenged Apple by offering publishers a more financially attractive subscription service with One Pass
Photo: Scott Brownrigg Interior Design

Commentator Richard Holway from TechMarketView said the level of Apple's commission means publishers are "between a rock and a hard place".

"Not being available on the App Store could seriously damage your sales. But conversely, do you want to give away 30 per cent of your revenues and ownership of the client?" said Holway.

Google also allows publishers to contact their customers direct via email in the hope that its One Pass subscription service will appear friendlier to publishers than Apple's. According to Holway, this approach may draw publishers to Google and threaten Apple's dominant position, but no publisher can "really ignore the iPhone and iPad market".

Apple reported record net profits of $6bn after sales of its iPad and iPhone rocketed, with seven million iPads selling in its last quarter alone.