Katie MarsalAccording to a report issued Friday by deVolkskrant (via Google Translate), Apple has employed "stricter rules" for publishers, informing them that they cannot offer free iPad access to paid print subscribers. By offering free access to print subscribers, newspapers could avoid charging for access through the iPad, and can avoid paying Apple a 30 percent cut of all transactions on the App Store.
In addition, nrc.nl reported Friday (via Google Translate) that Apple will no longer allow newspapers to offer free access to print subscribers after April 1. Content providers are upset with the change, characterizing the move as one that makes Apple "too dominant."
The alleged changes sent out to publishers by Apple come as the company is believed to be working on an update to iOS, its mobile operating system that powers the iPad, that will allow recurring subscriptions for software on the App Store. It is Apple's preparation for the new subscription option that is believed to have allegedly delayed the release of The Daily, a new iPad-only newspaper from media giant News Corporation.
While a number of reports from overseas claim that Apple has contacted publications to inform them of the changes, no such reports have yet emerged from any newspapers in the U.S.
It's possible that the application programming interfaces necessary to allow recurring software subscriptions through the App Store could be a part of the currently-in-beta iOS 4.3, though the first build of the software released for testing to developers this week makes no mention of such a feature. Rumors have suggested the iOS 4.3 update could be publicly released in March.
Apple is rumored to show off the feature, along with The Daily, at a forthcoming event in San Francisco. Numerous reports have indicated that Apple Chief Executive Steve Jobs will share the stage with News Corporation CEO Rupert Murdoch at the San Francisco Museum of Modern Art.
Christine McKee
Appleinsider Staff
Malcolm Owen
Wesley Hilliard
Andrew O'Hara
102 Comments
Hardly a show stopper!
The print price can be reduced by $0.70 and they can charge $.99 via iTunes App Store.
Apple gets it's 30% of $0.99, publisher gets the same revenue, and customer pays $0.29 more.
Isn't this the same model Netflix works on? You pay Netflix for instant streaming then get the Netflix app for free. Each month, Netflix gets their membership fee and Apple gets Zilch. Or is there some other agreement with Netflix? Not making a judgement either way, just noting the similarity and wondering if there's more going on there.
Isn't this the same model Netflix works on? You pay Netflix for instant streaming then get the Netflix app for free. Each month, Netflix gets their membership fee and Apple gets Zilch. Or is there some other agreement with Netflix? Not making a judgement either way, just noting the similarity and wondering if there's more going on there.
Netflix isn't offered in "print". Newspapers could still offer a free iPad addition to digital subscribers, which is why I don't understand what the big deal about subscription pricing is. If newspapers make a digital version viewable on the web or on other devices, they don't even have to think about giving Apple a cut or negotiating all these subscription pricing details.
Isn't this the same model Netflix works on? You pay Netflix for instant streaming then get the Netflix app for free. Each month, Netflix gets their membership fee and Apple gets Zilch. Or is there some other agreement with Netflix? Not making a judgement either way, just noting the similarity and wondering if there's more going on there.
Interesting point, there are countless apps in the app store that make money in a way that does not give Apple a cut.
Netflix and Hulu+ being two of the most obvious.
"Oh by the way, that thing that you offer to attract subscriptions for which we don't get a cut but we let you have for free? --They won't be free anymore."
Oh bad, greedy, selfish Apple! Bad Apple!