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dag | September 15, 2010 |
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Apple is finally getting close to announcing its plan to bring newspaper subscriptions to the iPad, according to a report released earlier today by The San Jose Mercury News.
Despite the lack of a well defined subscription service between Apple and publishers such as News Corp. or Time Inc., a myriad of newspapers and magazines such as The New York Times and The Wall Street Journal released their own dedicated iPad apps weeks after the launch of the iPad, but so far users were forced to buy issues individually, a rather clunky and expensive way of enjoying their favorite newspapers. The new service would allow subscribers to receive their newspaper issues automatically, without having to buy them individually.
The launch date for the subscriptions service is still unclear, as Apple and publishers haven’t come to a complete agreement just yet. Apple has been driving a hard bargain with regard to the revenue it expects from these subscriptions: no less than 30 percent for the subscriptions sold through its App Store, and about 40 percent of the advertising revenue generated by the newspaper apps (see this article for more details). Most publishing companies are fighting back as Apple’s expectations are too high in their opinion, and have been trying to convince the Cupertino-based company to accept a flat fee rather than a cut of the subscription and advertising revenue. As a result, the San Jose Mercury News stresses that the deal still has a good chance to fail.
Ultimately, if publishing companies buckle and agree with Apple’s terms, newspaper and magazine subscriptions could very well end up costing more than need be, at the expense of iPad users.