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+ - Apple to Keep 30% of Magazine Subscription Revenue 1

Submitted by Hugh Pickens writes
Hugh Pickens writes (1984118) writes "The Guardian reports that Apple has launched a new subscription service for magazines, newspapers and music bought through its App Store, expanding the model developed for Rupert Murdoch's iPad newspaper and will keep 30% of the revenue from subscriptions if the subscription is purchased through Apple. "Our philosophy is simple – when Apple brings a new subscriber to the app, Apple earns a 30% share; when the publisher brings an existing or new subscriber to the app, the publisher keeps 100% and Apple earns nothing," says Steve Jobs, Apple's chief executive, who is presently taking a medical leave of absence from the company. "All we require is that, if a publisher is making a subscription offer outside of the app, the same – or better – offer be made inside the app, so that customers can easily subscribe with one click right in the app." Apple's control over its App Store payments plan has long been a cause for concern for content companies. Publishers want to have access to subscriber data which can provide lucrative demographics on which to base advertising campaigns and targeted reader offers. Apple says customers purchasing a subscription through its App Store will be given the option of providing the publisher with their names, email addresses and zip codes. The use of such information will be governed by the publisher's privacy policy rather than Apple's."
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Apple to Keep 30% of Magazine Subscription Revenue

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  • Publishers complain about losing 30% of subscription revenue, but magazine publishers in the print world will happily sell subscriptions for less than the price of postage in order to increase their paid subscription count (and hence their ad dollars). To get 70% of the subscription money, all of the ad money, and have no printing/postage costs actually sounds like a good deal.

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