Rumor: Apple crafting newspaper subscription plan for iPad

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Date: Thursday, September 16th, 2010, 04:26
Category: iPad, Rumor

It’s hard to say whether the iPad will save the newspaper industry, but it looks like Apple might try.

Per the San Jose Mercury News, Apple will soon announce a newspaper subscription plan for the iPad, introducing a revenue sharing model similar to the one that has been employed for applications sold on the App Store, according to a new rumor.

Per sources close to the story, Apple has agreed to implement an opt-in function to allow subscribers to share their personal information with publications. Print publications rely on that information to share demographic data with advertisers.

Earlier this year, before the iPad was even released, publishers and Apple apparently struggled to reach a deal, as Apple was reluctant to share consumer data beyond sales volume. Advertisers and publishers, on the other hand, consider demographic data to be the “most valuable asset.”

Author John Boudreau spoke with Roger Fidler, head of digital publishing at the Donald W. Reynolds Journalism Institute in Columbia, Mo., who said that the anticipated plan will likely resemble the current App Store model, which would give Apple a 30% cut of all subscriptions sold through the digital download service. In addition, Apple could take as much as 40% of the advertising revenue from those applications.

Fidler also indicated that publishers are not pleased with the deal, as they would rather pay Apple a fee than a cut of their subscription and advertising revenue.

“They had hoped to offer app editions as part of subscription bundles that include print versions of the paper,” the report said. “Instead, they must use Apple as an intermediary with subscribers.”

Publishers have struggled with Apple in bringing their content to the iPad. At first, Apple did not allow subscriptions to magazines through the App Store. This impasse was broken in August, when People magazine became the first publication to offer subscribers free access to its iPad application.

Stay tuned for additional details as they become available.

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