While some larger publishers — such as TimeWarner — are able to negotiate exclusive deals with Apple regarding subscriptions, the company’s redesigned in-app purchase policy rules are forcing some developers out of business. The first to fall victim?  The studio behind ‘iFlow Reader’, BeamItDown Software.

“We put our faith in Apple and they screwed us,” BeamItDown Software’s Philip Huber told users. The developer was apparently strangled by Apple’s 30 percent cut requirement and some periodic expenses. “Our gross margin on ebooks after paying the wholesaler is less than 30 percent, which means that we would have to take a loss on all ebooks sold,” Huber reasoned.

Huber went on to describe the sheer effort the studio staff put into the project:

Five of us spent nearly a year and a half of our lives and over a million dollars in cash and sweat equity developing the iFlowReader app with its unique AutoScrolling approach to reading that many of you really like.

BeamItDown’s most successful app appears to be the first to fall victim to the subscription requirements announced back in February.

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