Sam OliverApple co-founder Steve Jobs himself reached out to publishers in early February, attempting to convince them to provide their content in a digital form on his company's forthcoming iPad. But according to the Financial Times, those talks have "stumbled."
Another report from the publication noted that talks are "friendly and continuing," but said that Apple's business models would be a radical change for the print business. One unnamed newspaper senior media executive said Apple's reluctance to share consumer data beyond sales volume is "pretty damn close" to being a dealbreaker.
"Publishers have spent decades collecting information about subscribers that influence marketing plans and, in some cases, the content of the publication itself," the report said. "Apple's policy would separate them from their most valuable asset, publishing executives said."
Some publishers also said Apple's revenue model, which gives the content provider 70 percent of sales while Apple keeps 30 percent, does not make much sense for subscriptions. Publishers are also reportedly concerned that they will see the same impact iTunes had on the music industry in 2003, when individual song sales from Apple severely impacted consumer purchases of full albums.
The Financial Times noted that some publishers, such as News Corp's Wall Street Journal, have gotten around Apple's revenue sharing model by offering a free application that allows users to log in to the newspaper's Web site with their subscription. But that "complicated" method isn't as simple as the one-click purchasing of iTunes.
Apple's entrance into the e-reader market has already shaken up the industry before the iPad is even available for sale. The introduction of the iPad has driven publishers to force market leader Amazon into higher prices for new hardcover bestsellers. While books are currently priced at $9.99 on the Kindle, that is expected to rise to between $12.99 and $14.99 by the time the iPad launches in March.
Apple will serve books for the iPad through its iBookstore, due to be a part of the iBooks application for iPad. The software features a 3D virtual bookshelf displaying a user's personal collection, and allows the purchase of new content from major publishers. Like the Kindle, it will offer content from the New York Times Bestsellers list.
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It might take a little time (the publishing industry is notoriously slow to move), but it will happen. Being so involved with a third party will make the industry nervous, but it really is just a matter of time.
Publishers know that in the years to come they will lose more and more readers to online and digital platforms.... but they, the publishers, will fight tooth and nail to get the best deal from Apple.
Just a matter of time... I can't wait to be able to subscribe to the mags I like via a true multi-media platform.
I commend Apple for standing up for OUR RIGHTS! Let the "Publishers" establish their own relationship and extract their information, marketing plans, data, etc AFTER the individual subscribes via the iTunes Store. At that point, it is a personal decision between the individual and the publisher. Apple should in no way give out information about its own individual database!
And just what percentage of the price goes towards printing and distribution now? Is Apple's 30% cut that unreasonable compared to that?
I commend Apple for standing up for OUR RIGHTS! Let the "Publishers" establish their own relationship and extract their information, marketing plans, data, etc AFTER the individual subscribes via the iTunes Store. At that point, it is a personal decision between the individual and the publisher. Apple should in no way give out information about its own individual database!
I hope you are being sarcastic here…
Otherwise you're saying that only Apple should have the right to access this marketing information. And why should Apple have this right when "we" are not using the iPad for the iPad but as a medium to access the content the providers offer to us ? The iPad is meant to be like a TV : when you're watching TV, you're not watching "Panasonic", you're watching (for instance) "ABC", the same ABC you'll find on a LG or Sanyo or Sony… So the people who should have information about their users are indeed the publishers, whether you like it or not : they are the one providing/finding the content you are interested to see.
Publishers are also reportedly concerned that they will see the same impact iTunes had on the music industry in 2003, when individual song sales from Apple severely impacted consumer purchases of full albums.
Funny, I thought the impact of iTunes was to save the music industry that was at the time on the bones of it's arse. Individual song sales may have impacted album sales, but illegal downloads which people were using because the music industry had ignored digital downloads which the market was ready for were killing them.
Publishing is in a similar position now, but they are doing it themselves. They put all their content on-line for free and have proven unable to find a way to make that pay. Maybe iPad will be the solution to that.
Businesses that are slow to react to what the market want will surely die.