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Apple iPad "to offer newspaper subscriptions"

By Stewart Mitchell

Posted on 17 Sep 2010 at 10:53

Apple is planning to launch a subscription model for accessing electronic versions of newspapers, according to reports.

The service, which would be suited to the company's iPad, could come as a welcome relief to publishers, who are battling against declining print sales worldwide.

However, the terms of the deal – as reported in the Mercury News – would see Apple take a large bite from any revenues generated for publishers through the model.

The report claims Apple would probably seek a 30% cut of all subscriptions sold via the App Store, and as much as 40% of the advertising revenue.

Newspapers such as The Times already offer digital versions of their titles on the iPad, but these are distributed via apps rather than iBooks.

It is understood that publishers are unhappy with Apple's proposed terms and would have preferred a fixed fee, but amid falling sales they are keen to explore new avenues and could be forced to accept Apple's conditions.

They could also benefit from acquiring data on their readers, which could help boost advertising revenue. Apple has agreed to provide an opt-in function, which would allow Apple to pass subscribers details to publishers, who could use the data to attract advertisers, the report claims.

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User comments

"Apple is planning to launch a subscription model for accessing electronic versions of newspapers, according to reports."

Why would you need a subscription to something that you can access on the iPad for free by going to the relevant web site?

OK, there may be versions that are specially tailored to the iPad but really, how necessary is this?

Unless more newspapers are intending to follow Rupert Murdoch's paywall approach?

In that case, see ya!

By Lacrobat on 17 Sep 2010

30% is standard retail practice

How much do you think newsagents take? 30% is a standard retail markup.

Anyhow, nobody's forcing the news vendors to put their magazines and stuff on the Apple Newstand.

By SwissMac on 17 Sep 2010

@Lacrobat - "Why would you need a subscription to something that you can access on the iPad for free by going to the relevant web site?"

You can't. Not always, anyway. An increasing number of newspapers' websites (including the Times) are now behind 'paywalls' at a quid a day or something.

Also, I imagine the daily iPad edition would be delivered in full to your device each morning (like the Kindle newspaper subscriptions already are), so you could read it on your commute even on the Tube where there is no 3G signal.

By flyingbadger on 17 Sep 2010

Hi flyingbadger,

That's a good point about a "delivery" option (even more useful for owners of wifi-only iPads).

Still watching the "Murdoch experiment" play out.

By Lacrobat on 17 Sep 2010

Doesn't the Tube offer free WiFi? Trains in Switzerland offer this on all journeys (but there's no underground, just loads of tunnels - the longest of which is being built now and is something like 57km long!!). WiFi's pretty important for commuters.

By SwissMac on 17 Sep 2010

@SwissMac

Nope, the tunnel walls of the tube are made from thick panels of cast iron. WiFi in the traditional sense simply wouldn't work.

The train radio system works off a special leaky feeder. To even get cell phone reception would require the laying of hundreds of miles of cabling in the tunnels. The cable runs are already pretty full so I'd defy anyone to find some space given the clearance between train and tunnel wall is only a couple of inches in places.

There's also the cost issue, and right now the priority is on replacing old knackered bits of kit before adding new. It may happen but I doubt any time soon

By hjlupton on 19 Sep 2010

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