6
This content is rated TV-MA, and is for viewers 18 years or older. Are you of age?
Sorry, you are not old enough to view this content.

CNET News Video: iPhone OS 3.0: In-app buying

About Video Transcript

CNET News Video: iPhone OS 3.0: In-app buying

3:08 /

Apple senior vice president of iPhone software Scott Forstall explains how iPhone users can buy new game levels, subscription content, and more from within an iPhone application.

[ Music ] >> Well, I'm happy to say that we are supporting all of these additional purchase models in iPhone 3O. And we're doing it with what we call InAppPurchase [assumed spelling]. Let me show you how it works. Let's say you have an e-magazine. In iPhone 3O, right from within this application, you'll be able to purchase the renewal. So you get this standard panel. Comes up and says in this case, would you like to purchase six more months for $4.99? When you tap "buy", you'll continue to receive all of the issues to this magazine right inside the app. Next, a game. You can now purchase a game that would come, with say ten levels. And when you're done playing those ten levels, just by the tap of your finger, you could purchase the next ten levels for the game. When you say you'd like to buy it, the game will automatically download those levels right into the game. One more example. City Guides. Again, before iPhone 3O, you would need to sell one application per guide. With iPhone 3O, you can sell a generic City Guide application, and then sell City Packs. So you can see here, I've already purchased, say the Boston and the New York City pack. So let's say I want to purchase Chicago. It's as easy as tapping on Chicago, and it brings up the standard alert asking if I'd like to purchase it. Now here's where it's really nice. This whole thing is tied directly into the iTunes store. So, when you tap on buy, it brings up a standard iTunes credential panel in a secure way, you know. Get your username, you type in your password, and when you do, it talks back to our iTunes store, validates the account, and when it proves the purchase, the application is free to download that City Guide right into the app. And now, you're good to go. So, InAppPurchase. The business model for InAppPurchase is the same as for the App store. Meaning, the developer sets the price for InAppPurchase items. Again, 70 percent of the revenue goes straight to the developer. There are no credit card fees. We will cover all the credit card fees, and developers are paid monthly. Now, to keep the model simple for the consumer, this is for paid apps only. So if a developer sells an application, and it makes sense in that application to have an InAppPurchase, say for a subscription, you're absolutely happy to go ahead and do that. But to keep it simple, when a consumer sees a free application, free apps remain free. You won't be asked ever to buy something inside that free application. And that's what we're doing for InAppPurchase. [ Music ]

New releases

XCAR Awards 2014: Person of the year
1:41 December 20, 2014
Some incredibly people crossed paths with XCAR in 2014. We look back to see who impressed us most.
Play video
2014 BMW i8 (CNET On Cars, Episode 56)
19:02 December 19, 2014
BMW's i8 is definitely a taste of the future -- but whose? We'll shed some light on MPGe, the benchmark for tomorrow's cars. And we...
Play video
Need a new size? Just tap the mirror
1:55 December 19, 2014
In a place where fashion comes first, tech is coming in at a close second. In major department stores and small boutiques, the dressing...
Play video
Did life forms exist on Mars? Curiosity makes a big find, Ep. 187
4:46 December 19, 2014
It's the last Crave show of 2014. This week, Curiosity makes a huge discovery, the US Navy has a shark drone and American satellites...
Play video
Obama: Sony wrong to pull movie over hackers' threats
2:56 December 19, 2014
President Obama addresses the Sony cyberattack and vows to respond to North Korea. Also, T-Mobile settles cramming lawsuit, and Facebook...
Play video
A cheap activity tracker you will actually want to wear
2:11 December 19, 2014
CNET's Dan Graziano gives you a look at one of the most affordable fitness trackers on the market.
Play video
Embarrassing moments in tech (2014)
2:53 December 19, 2014
The high profile tech of 2014 that aimed for the stars and landed in the gutter.
Play video
Solid tablet design hindered by so-so performance
2:48 December 19, 2014
The Lenovo Yoga Tablet 2 has an excellent ergonomic build, but its performance lacks the same finesse.
Play video