Apple Softens Mag App Policy
Perhaps serving as a model for all publishers' tablet strategies, Time Inc. has reportedly reached a deal with Apple to make all its iPad editions free for print subscribers. "Starting Monday, subscribers to Sports Illustrated, Time and Fortune magazines will be able to access the iPad editions via the apps, which will be able to authenticate them as subscribers," The Wall Street Journal reports.
"It's a precedent-setting agreement that could pave the way for similar deals with other major publishers," GigaOm writes. "The details of Time Inc's deal with Apple are still unclear, but it is a softening of Apple policy," PCWorld points out. "Until now Apple did not allow publishers to bundle print subscriptions, so users of the Time Inc. titles (except People) had to pay extra to get the iPad editions of print magazines."
Why did Apple drag its feat on the issue for so long? Likely, "because it means subscription revenue will bypass the App Store altogether, and also because when subscribers sign up for the print edition, all personal info ... goes directly to the publisher," GigaOm explains.
Yet, "iPad users, unlike TouchPad readers, still won't be able to purchase exclusively digital subscriptions to Time Inc.'s stable of publications," Engadget notes. "It's no secret that Time Inc. wants to incorporate digital subscriptions to its iPad model, but negotiations have hit some roadblocks, largely thanks to disputes over how Apple shares subscriber data."
"Apple and publishers still have room to talk about handing subscriber information, an important part of how publications monetize readership; and we have yet to see whether other large publishers will play ball with Apple's rules or will try to eschew Apple's 30 percent cut from everything sold in the App Store," PCWorld adds.
Also, mocoNews writes, "Given that Time Inc. took months to extend the free content deal to three more magazines in its stable, it's not a given that we will see these kind of free iPad content incentives appear elsewhere very soon."
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