Apple and Publishers Clash over iPad Magazine Subscription Plans

By dag | July 28, 2010 | 2 comments

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Earlier today, All Things Digital revealed that for the last couple months, Time Inc. and Apple Inc. have been quietly battling over iPad magazine subscriptions. Time has been trying to roll-out a subscription program for its Sports Illustrated app, but so far Apple has prevented the New-York based company from moving forward with the program.

Unsurprisingly, the main reason for the disagreement seems to be money: Time is pushing for its readers to pay their subscriptions directly to the publishing company, while Apple wants the readers to pay via their iTunes accounts instead. When it comes to magazines, Apple’s position seems to be similar to the position it adopted with the music industry: iTunes should remain the sole delivery and payment mechanism when it comes to content for iOS-based devices, in order to secure a cut of the revenue for Apple.

Time has been trying to convince Apple to change its position, but so far the situation seems locked, and despite Time’s threats to simply remove its apps from the App Store, Apple hasn’t budged.

Interestingly enough, other publishers like The Wall Street Journal have been allowed to bill their readers directly for iPad subscriptions to their papers, something that makes Apple’s overall position quite ambiguous. For now, the company remains mute on the topic, but rumor has it that Apple does not want to deal with low margin newspaper subscriptions, and is a lot more interested in higher margin magazines subscriptions.

About dag: Certified geek

http://www.pedalthrottlerepeat.com 2wheel_Ted

So what’s the pay model for publishers who sell magazine subscriptions via the Zinio app? I have several subscriptions to different magazines through Zinio, and pay for subscriptions or individual issues through the Zinio app; likewise, those individual issues or subscriptions are typically CHEAPER price-wise compared to print.

Come to think of it, I believe the same goes for the Marvel Comics app. The conflicts highlighted in this case aren’t adding up per this article. I reckon TIME Inc. is trying bypass Apple’s cut in every possible way.
http://www.magazinenook.com Helios Manikius

I’ll tell you one thing I am sick and tired of paying $5.00 an issue for SI or Time and apple is just being ridicules. they should pull the magazines from itunes cause people are fed up with the lack of an annual subscription.