Apple courts publishers for iPad digital newsstand
Apple has a number of reasons for expanding their marketplace, the first of which is competition from impending Android tablets. By creating an exclusive hub on the iPad, Apple will be able to defend its device, as it did with the iPod. The service will obviously bring in new revenue for Apple, but should also appeal to an ailing print industry.
Despite the potential win-win for Apple and the publishers, some publishers are wary of the collaboration. One point of contention is that Apple would limit the publishers' access to information about the readers, which would be used for marketing research and advertising sales. The publishers are also concerned by the 30% fee that Apple charges for selling content. Print publishers, however, should consider how many more subscriptions they might enjoy under the umbrella of Apple's 160 million accounts.
There is no word yet on which publishers have agreed, but Apple insiders have said that at least one is already on board. The same sources indicate that the Hearst Corporation is more open to the idea than some other large publishers.
source: The Wall Street Journal
1. RobC (unregistered)
160 million accounts but how many of them want or are willing to pay for that? I don't read the newspaper or order magazines anymore because I have the internet. Most content can be found there for free so why pay?
2. easytochris (Posts: 126; Member since: 21 Jan 2010)
i would. in the event of being able to have a daily newspaper delivered to me at the same time every morning and i can read the news without having to carry around a bunch of mangazines/newspapers that are just clutter on my desk would be fantastic.
3. Hen (unregistered)
I feel you RobC but considering how many of these news outlets are hurting for money, it will only be a matter of time before they start moving to pay services or they are going to require a lot more personal data. They are going to have to jump on board because their current business model is outdated.
4. JeffdaBeat (unregistered)
But I think that's the point. Instead of you having to go to news websites, the paper will be "delivered" to you every morning. Newspapers can provide more content in their digital news stand every month and have an even better way of tracking their subscriptions than before. And the thing about newspapers is that most of the money came from advertising, not you actually purchasing the paper. Paper purchases made it a lot easier to track subscriptions. Imagine if it all went digital...you'll know exactly how many tablets you're sending it to, even if the service is free. Then you can charge your advertisers a bit more...plus there is no more paying for broadsheets. Everything would be electronic. This is what will save the newspaper industry.
5. RobC (unregistered)
All valid points and I see where people are coming from... but given the prevalence of piracy no matter how cheap they make media I just don't see consumers wanting to be tied to a subscription service in the long term. I remember buying newspapers and magazines and out of the dozens of articles I was really only interested in about 4-5. Maybe if it was offered to just pay a dime to a quarter to read an article I'd be more interested.