Rhapsody will not give in to Apple’s subscription demands.

A report is stating that Rhapsody has sent out a statement claiming that they will not bend over and let Apple take 30% of their subscription costs.

If you didn’t read earlier, Apple is requiring their developers who offer a subscription payment outside of the App Store to offer it within their app as an in-app purchase. Rhapsody charges $10 a month for unlimited music streaming which would result in them paying Apple over $3 a month to the customers who buy it through the app.

Here’s an excerpt of what Rhapsody had to say:

Our philosophy is simple too – an Apple-imposed arrangement that requires us to pay 30 percent of our revenue to Apple, in addition to content fees that we pay to the music labels, publishers and artists, is economically untenable. The bottom line is we would not be able to offer our service through the iTunes store if subjected to Apple’s 30 percent monthly fee vs. a typical 2.5 percent credit card fee.

We will continue to allow consumers to sign up at www.rhapsody.com from a smartphone or any other Internet access point, including the Safari browser on the iPhone and iPad. In the meantime, we will be collaborating with our market peers in determining an appropriate legal and business response to this latest development.

It will be interesting to see how other big players such as Hulu and Netflix respond.