
Amid widespread complaints from
publishers that Apple's business model and control of consumer information prevents them from selling subscriptions to iPad owners, the tech company is upping the ante in Europe. It is cracking down
on newspapers that offer free iPad editions to their print subscribers. The reason: a 30% take (Apple's usual cut) of nothing is nothing.
The Web sites of De Volkskrant, a
national Dutch daily, and NRC Handelsblad, a business newspaper, reported that Apple will no longer allow publishers to offer free iPad editions to print subscribers beginning April 1. That
move parked protests from publishers that fear the tech company is acquiring monopolistic power over content distribution and business models.
This is just the latest in a series of reports
raising concerns about Apple's policies on content sales and distribution.
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In late December, a report in Women's Wear Daily noted that single-copy sales of digital magazine editions for
the iPad had fallen steeply since the device was first introduced in April 2010. For example, Wired's iPad sales slumped from over 100,000 digital magazines in June to 31,000 digital copies in
September, followed by 22,000 in October and 23,000 in November, per WWD.
(Plus, many publishers complain they can't get access to consumer information from Apple to target their sales.)
Many magazine and newspaper publishers say they are discouraged from offering digital subscriptions for the device, given Apple's reticence in sharing consumer data -- like the geographic
location of iPad owners -- which makes it difficult to market subscriptions to likely buyers.
By the same token, publishers want to retain control of their subscriptions and users' personal
information. So far, most publishers have confined themselves to selling single issues, although a few big publications -- including Newsweek, People, and The Washington Post -- have
introduced iPad subscription models.
The latest news from Europe may put even these few pioneering subscription models on the offensive -- especially if Apple stands by another digital
content policy, forbidding publishers from charging consumers for any content that is already available for free elsewhere (e.g., online).
This would seem to leave most publishers with few
options, since they can't offer subscriptions for free -- and they can't charge for them if any of the content is available online. Indeed, it seems to imply that Apple expects them to create entirely
new content -- in effect, a new, separate publication -- for the iPad.