BeamItDown Software is shutting down the iFlowReader application due to Apple’s in-app purchasing policies. Apple takes a 30% cut from all in-app purchases, which drastically cuts the margins on books.
BeatItDown launched iFlowReader in December 2010 and they hit about 6 million downloads across three platforms. ?What sounds like a reasonable demand when packaged by Apple?s extraordinary public relations department is essentially an eviction notice to all ebook sellers on iOS,? stated BeatItDown developers.
iFlowReader noticed that one day in February 17,000 Random House books disappeared from their catalog and it appeared on the iBooks app the next day. iFlowReader will be officially shut down on May 31st.