Apple's effort is aimed at luring more consumers
to the iPad and helping publishers sell subscriptions, rather than single issues. The main hang-ups between Apple and publishers including Time Warner Inc., Conde Nast, Hearst Corp. and News Corp. are
who controls data about users and how to split subscription revenue. Pricing for subscriptions also hasn't been worked out.
One challenge is that publishers prefer to control subscriber
data and revenue, said Ken Doctor, an analyst with Outsell Inc. in Burlingame, California. Apple is trying to insert itself as a middleman that doesn't exist in other industries, said Doctor, who is
not directly involved in the talks. For example, Sony Corp. doesn't demand a cut of the revenue from television shows on its TV sets, Doctor said.
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