Apple is going to announce a newspaper subscription plan that will potentially give the company a 30% cut of all subs sold through its App Store and “as much as 40 per cent of the advertising revenue from publications’ apps,” The Mercury News reports.
40% of all ads sounds usurious, and we suspect something may have been lost in translation. It’s more likely that Apple is offering to sell its new iAds within newspaper apps and keep 40% of that revenue.
More from The Mercury News:
The Cupertino company has agreed to provide an opt-in function for subscribers to allow Apple to share with publishers their information, which includes vital data that news organisations use to attract advertisers, industry sources say…
…While a handful of national papers already offer app subscriptions to iPad users, major metropolitan papers across the country are getting ready to roll out their own publication apps and have been in discussions with Apple. Industry leaders hope tablet devices and subscription-based digital editions can help newspapers stem, if not reverse, losses incurred after they began offering content online for free years ago.
Also, it looks like Apple isn’t making things easy for publishers:
Publishers wanted to pay Apple a fee rather than a cut of subscription and advertising revenue and are not happy with Apple’s terms …. They had hoped to offer app editions as part of subscription bundles that include print versions of the paper. Instead, they must use Apple as an intermediary with subscribers.
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