Major media publishers are grappling with Apple’s control over the iPad store–and they aren’t too happy about it.
Some magazine and newspaper publishers are in early talks with Apple about creating iPad applications. But Apple’s compensation model and user data policies have been touchy subjects.
Media executives fear Apple will have unprecedented control over their readers’ information, one of their most valuable treasures to attract advertising, and will take almost a third of their subscription revenues “forever,” according to the Financial Times.
Sound familiar? It’s the same battle book publishers had with Amazon’s Kindle and Apple’s iTunes. This time, publishers are concerned about giving up a chunk of their newspaper and magazine subscription sales for an unlimited amount of time.
“30% forever changes the economics,” one media executive told the FT. “You can imagine we feel less good about it. Should (subscriptions) be treated differently than single item sales?”
Although talks are in the early stages and described as “friendly,” they could turn ugly very soon.
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