Wednesday, September 15, 2010

iPad News Subscription

Apple is looking to announce a subscription plan for newspapers which could give the company a 30% cut of all subscriptions sold via its App Store.

"as much as 40 percent of the advertising revenue from publications' apps," The Mercury News reports.

40% of all ads sounds quite high, and we suspect something may have been lost in translation. It's likely that Apple is offering to sell its new iAds within newspaper keep 40% of that revenue.

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 organizations 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.

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