• by Erik Sass , May 2, 2011

Time Inc. and Apple have reached an agreement putting to rest one of the major points of contention between publishers and the technology company concerning iPad distribution. The new deal allows Time to deliver free digital editions to iPad owners who already subscribe to print magazines.  

According to The Wall Street Journal, the deal will make digital editions of Time, Fortune and Sports Illustrated available for free to iPad owners who subscribe to the print editions of these magazines.

Previously, Apple had refused to allow publishers to make free digital editions available to print subscribers, as such an arrangement would take advantage of Apple's iPad platform without compensating the company. However, magazine publishers protested that they couldn't realistically ask print subscribers to pay extra for digital editions which are substantially the same. The situation was further complicated by Apple's insistence that publishers wouldn't be allowed to charge for content that was available for free elsewhere -- for example, via a Web site or another mobile app.

This is another step toward reconciling Apple and major publishers, which have complained that Apple's privacy policies regarding consumer data make it prohibitively difficult to market subscriptions.

In February, Apple unveiled a digital subscription model that allows users to buy subs for magazines and other kinds of content through Apple's App Store. The tech company relaxed its previous prohibition on disclosing consumer information to publishing partners by agreeing to share the name, email address and Zip code of customers who subscribe to digital content -- provided that the customers consent.

Apple has also relinquished some control by allowing publishers to sell digital subscriptions via their own Web sites, and to offer free digital editions to people who already subscribe to the print version. Publishers get to keep all the revenue from subs sold outside the Apple app store -- a significant concession by Apple on another controversial issue. But magazine publishers are still likely to object to Apple's standard revenue split for subs sold via the Apple App store, which gives the tech company 30% of all sales.

Apple has been sending mixed signals in other parts of the world. In January, several European newspapers reported that Apple will no longer allow publishers to offer free iPad editions to print subscribers beginning April 1. That move sparked protests from publishers that fear the tech company is acquiring monopolistic power over content distribution and business models.

In the U.S., there is some evidence that the controversy over subscriptions may have slowed magazine penetration via the iPad.

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.