Publishers Wary Of Apple Control Over iPad Revenue & Data

Newspaper and magazine publishers are reportedly finding it difficult to derive any tangible benefits from it, a report published on Financial Times indicated.

This is despite the fact that the Apple iPad has brought a bevy of opportunities for book publishers in the guise of its signature iBookstore for the device.

The report is shedding light on some of the key issues between the periodicals publishers and Apple that are preventing them from bringing their content on the iPad. The newspaper is quoting ownership of subscriber details, along with pricing as the main issues between the two.

Apple’s pricing model for the iBookstore is quite similar to what it has for songs on its iTunes Store; that is, Apple keeps 30 percent cut from the sales for providing the necessary infrastructure and service, while 70 percent goes to the content owner.

However, the company does offer content owners some control over pricing, but that is not sufficient for the newspaper and magazine publishers.

Along the same line, industry publishers told the FT that “the revenue-sharing plan makes less sense for recurring charges such as subscriptions”.

Another major issue that is reportedly being cited as a key obstacle for periodicals publishers is the sharing of subscriber information. Such information is crucial for the publishers ever since they have started tracking their customers.

Our Comments

Publishers tend to use these demographics for a number of purposes, such as assessing marketing and subscription trends among customers, among various other things. But they need to move very fast or else possibly suffer even deeper cuts and revenue losses.

Related Links

Publishers want more to publish on Apple's iPad


Newspapers, magazines less keen on iPad than book publishers

(Ars Technica)

Report: Newspapers Balking at iPad Deal Over Revenue Sharing, Customer Info

(The Mac Observer)

Publishers skittish on iPad over lack of subscriber info


iPad deals with publishers face obstacles