European newspaper publishers unhappy with Apple's publication requirements

A few European publishers have heard from Apple about subscription arrangements on the App Store, and they're not happy at all. The agreement isn't that surprising -- just as with the current setup in iTunes for software developers, Apple is asking that all subscriptions go through them, and that they take their usual 30 percent cut. But that has European publishers quite angry -- not only is the price higher than they want to pay, but they say it's because Apple will cut them out of access to things like subscriber demographics and other inside information that they'd have if they ran subscriptions themselves.
All fair points. Apple definitely doesn't want to "lose control" of any possible in-app subscriptions, and since it already controls access to the App Store, these publishers are at Apple's whims anyway. If publishers try to run a subscription scheme Apple doesn't agree with, their apps likely won't stay on the App Store for long.
Of course, the real meter here is The Daily -- while it got a nice reaction at launch, if that model doesn't prove itself to be profitable or workable, publications may not bother with the App Store anyway. Even if they don't run apps through Apple's subscription channels, there's still Mobile Safari and conventional paywalls.
[via App Advice]
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A few European publishers have heard from Apple about subscription arrangements on the App Store, and they're not happy at all. The...
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Hi,
I want to read more.
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Or, just go like the Amazon Kindle app and make it so you make purchases through the web browser then sync them through the app...
(At least, this is what I think the Amazon Kindle app still does.)
The whole point is that this will not be possible any longer. You have to use in app subscription. It also not clear whether the kindle way is even good for ebook readers any longer, so far we havent heard amazon or apple on that topic.
T
Here's an idea:
Make a web app of your publication instead, or publish it on one of the other Tablet platforms out there.
The only benefits a native App has over a web app is exposure, speed on older hardware, securitity of data and integrated revenue management. All these thing are worth a 30% hit in paid revenue. If your profit margins are that thin, or your Unauthorised Data-mining of your customers demographic is that important to you, maybe the App store isn't the right solution for you.
I prefer using Native Apps because off these reasons. I don't have to worry about my personal information being abused, I don't use facebook for the same reason.
I don't get that move on Apples part. It is not like the iPad as seen a slew of news content as is, it certainly has not been the revolutionary device turning the industry upside down. Why go out and kill this little flower before it even blossomed for pure greed.
@arnan.
Apple being a content provider may or may not work for content like books. It certainly won't work for content like news. You need a team of professional writers to generate this content, not single writer.
T.
T
Putting newspapers into a distribution channel always cuts some of your profit, unless you own the distribution channel you have no real say in this.
And you think a newspaper vendor is going to ask for your demographics everytime he sells a newspaper? Not really, so there are no real metrics except for the amount of unsold newspapers (which they take back in).
So what are they whining about. Isn't this the same? I bet Apple Store shows more metrics then any newspaper stand + pay commission for making use of a salespoint that already attract a huge amount of daily visitors, I mean sounds logical to me. Plus the 30% they lose to Apple. How much is saved on paper and print? How much is environmentally saved?
not to mention news stands make a $ cut too, it may not be 30%, for all I know it may be more.
February 07 2011 at 6:46 PM Report abuse Permalink rate up rate down ReplyI think the publishers have a reasonable objection; understanding the demographics of the audience is key to selling the advertising that makes up their business model. I don't have any illusion that it is subscription fees that pay for any periodical. That's why the cover price is so much higher than the subscription rate: a publisher gets to know who the subscribers are.
Solution: forget about doing a native app, and stick with a subscription-based, iPad optimized web app.
Lol, but apple should forgo the publishers and approach the writers and content makers directly.
Apple is the publisher. A publisher publishing to apple which then publishes the content. That makes no sense!
Archaic business model needs renewing, anyone?
At least in my country it's not so much a question about in-app subscriptions, but rather that publishers would like to be able to give subscriptions for free to those who also subscribe for the printed paper. And this is impossible according to Apple's rules, they demand that averyone pays.
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