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'People' Mag's iPad App Delayed By Photogs

  • Reuters, Wednesday, August 18, 2010 11:58 PM
More than a dozen of the photo agencies that supply celebrity snapshots from the paparazzi are banding together to withhold their prized product unless it can get additional compensation from People, resulting in the postponement of its iPad app. While the standoff centers on one publication for now, just about any other brand that makes photos of the rich and famous their stock in trade is watching nervously from the sidelines. Whatever deal they strike could set the terms of trade for the industry going forward.

Time has been one of the more aggressive publishing companies looking to make its mark on iPad and has already deployed other major brands, including Sports Illustrated and Fortune. Time insiders acknowledged that reaching agreement with the agencies is a pressing issue. Photo agencies are resentful of steep cuts in photo fees the magazines demanded when the recession hit. People also is arguing that photo use on the iPad is essentially a marketing tool. There is a clause in overall licensing agreements that allows for promotional re-purposing.

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