Apple's digital subscription model likely to backfire
TweetFollow Us on Twitter

Apple's digital subscription model likely to backfire

Apple may have finally bitten off more than it can chew with its "my way or the high way" approach. This week Apple unveiled its new subscription model for the Apple App Store, confirming that magazine and newspaper publishers will be forced to pony up 30% of their cover price.

It's nice that Apple is making it easier for consumers to buy subscriptions and may help publishers find new subscribers. But 30% is too steep a fee and is almost certainly going to squash any hopes of a digital publishing revolution that will "save" newspapers and magazines. The margins for digital content are simply too thin for this to be acceptable to a majority of publishers.

There are other drawbacks to Apple's plans as well. A publisher can learn the name, e-mail address and zip code of in-app subscribers only if the user agrees to share that information. Most of us won't do that, but, traditionally, publishers have used this info to, among other things, target advertisers. Also, publishers can no longer provide links in their apps (to a web site, for example) that allow the customer to buy content or subscriptions outside the app.

Of course, magazine and newspaper publishers have had years to come up with their own distribution methods to deal with the digital age. However, like the music and movie industries before them, they kept their heads in the sand, pretending that there was no change in the wind. By that reasoning, perhaps Apple is giving 'em what they deserve. But I don't think Apple's subscription method will meet much success. There's too much opposition to it.

The Online Publishers Association (http://www.online-publishers.org/) -- a not-for-profit trade organization "dedicated to representing high-quality online content providers before the advertising community, the press, the government and the public" -- says (http://macte.ch/4q2tf) its members — which includes Time Inc., Hearst, Conde Nast, Bloomberg, National Geographic and Forbes -- are worried the new regime doesn’t give them the flexibility they need to serve their customers.

Pam Horan, publisher of the Online Publishers Association, says one problem is that publishers can’t include links in apps that drive users to external web sites to make a purchase, any subscription deals offered within the apps have to be digital only (the only kind Apple sells). This even though users might well prefer to buy a subscription that bundles a print edition. “Why not let the consumer decide how they want to access it?” she says.

Also, NewspaperDirect (http://www.newspaperdirect.com) -- a digital publication delivery service -- has issued guidance for publishers facing a new world now that Apple requires them to employ in-app purchasing of content offered through news apps in the App Store. The organization isn't happy about Apple's move, calling it a "money grab"; you can read all about it at http://tinyurl.com/4mv53nw .

"In a world where personalization is becoming more and more important, publishers must be able to tailor content to the preferences of their subscribers," says Newspaper.Direct. "Under Apple’s policy, this will not be possible. And what is even worse is that publishers will not be able to count these subscribers in their audited circulation."

Finally, "Silicon Alley Insider" (http://macte.ch/AhYkK) notes that music subscription service Rhapsody says that Apple's new rules for subscriptions for iPhone and iPad apps are "economically untenable" and it has teamed up with other music services to consider options, possibly including legal action.

The new rules put music services into a tough spot because unlike magazine publishers they're already paying substantial fees to record labels and music publishers, says "Silicon Alley Insider." Rhapsody doesn't even offer in-app purchases as an option on its iPhone app -- when users want to sign up, the app opens Safari to Rhaspody's Web site, where they can go through the sign-up process.

The new rules allow Rhapsody to continue doing this -- and to keep all the money from subscriptions purchased through Rhapsody.com -- but it also must offer in-app subscriptions for the same price and give Apple its 30% cut. According to "Silicon Alley Insider," Rhapsody says it can't continue to "offer our service through the iTunes store if subjected to Apple’s 30% monthly fee versus a typical 2.5 percent credit card fee."

-- Dennis Sellers
dsellers@applecentral.com

 

Community Search:
MacTech Search:

Software Updates via MacUpdate

CleanMyMac 3.9.2 - $39.95
CleanMyMac makes space for the things you love. Sporting a range of ingenious new features, CleanMyMac lets you safely and intelligently scan and clean your entire system, delete large, unused files... Read more
CleanMyMac 3.9.2 - $39.95
CleanMyMac makes space for the things you love. Sporting a range of ingenious new features, CleanMyMac lets you safely and intelligently scan and clean your entire system, delete large, unused files... Read more
Printopia 3.0.4 - Share Mac printers wit...
Run Printopia on your Mac to share its printers to any capable iPhone, iPad, or iPod Touch. Printopia will also add virtual printers, allowing you to save print-outs to your Mac and send to apps.... Read more
Tinderbox 7.3.1 - Store and organize you...
Tinderbox is a personal content management assistant. It stores your notes, ideas, and plans. It can help you organize and understand them. And Tinderbox helps you share ideas through Web journals... Read more
ExpanDrive 6.1.6 - Access cloud storage...
ExpanDrive builds cloud storage in every application, acts just like a USB drive plugged into your Mac. With ExpanDrive, you can securely access any remote file server directly from the Finder or... Read more
Printopia 3.0.4 - Share Mac printers wit...
Run Printopia on your Mac to share its printers to any capable iPhone, iPad, or iPod Touch. Printopia will also add virtual printers, allowing you to save print-outs to your Mac and send to apps.... Read more
Tinderbox 7.3.1 - Store and organize you...
Tinderbox is a personal content management assistant. It stores your notes, ideas, and plans. It can help you organize and understand them. And Tinderbox helps you share ideas through Web journals... Read more
ExpanDrive 6.1.6 - Access cloud storage...
ExpanDrive builds cloud storage in every application, acts just like a USB drive plugged into your Mac. With ExpanDrive, you can securely access any remote file server directly from the Finder or... Read more
VOX 3.0.1 - Music player that supports m...
VOX just sounds better! The beauty is in its simplicity, yet behind the minimal exterior lies a powerful music player with a ton of features and support for all audio formats you should ever need.... Read more
Merlin Project 4.3.3 - $289.00
Merlin Project is the leading professional project management software for OS X. If you plan complex projects on your Mac, you won’t get far with a simple list of tasks. Good planning raises... Read more

Latest Forum Discussions

See All

5 reasons Kingdoms of Heckfire is your n...
Kingdoms of Heckfire is a brand new kingdom battler by A Thinking Ape, and it's one that aims to make the genre accessible for new players. But that doesn't mean it's easier or shallower. No, the developer has worked hard to streamline the... | Read more »
The best Black Friday mobile game deals...
With Black Friday in full swing, more and more mobile games have been going on sale. Many of mobile's finest games are available at crazy discounts. If you haven't yet, check out part one of our Black Friday game discount roundup. Here are the... | Read more »
Animal Crossing: Pocket Camp mid-game gu...
By this point, you've probably hit or surpassed mid-way inAnimal Crossing: Pocket Camp.The game changes quite a bit as your focus slowly shifts from endlessly fulfilling requests for campsite buddies to improving your amenities. Here are a few tips... | Read more »
Mille Bornes (Games)
Mille Bornes 1.0 Device: iOS Universal Category: Games Price: $1.99, Version: 1.0 (iTunes) Description: | Read more »
Blob gets a new look in Give It Up! 3
Blob makes his triumphant return, as Yoozoo Games and Invictus Gaming have joined forces to create Give It Up! 3, the third in a series of delightful action-adventure games featuring our wobbly friend Blob. In this newest adventure, you’ll get to... | Read more »
148Apps' Ultimate Guide to Black Fr...
Black Friday is here, and there are a whole lot of discounts running right now for folks on the lookout for new mobile devices, accessories, and yes, even games. Here's a helpful rundown of what you'll find both in stores and online. Happy... | Read more »
The best Black Friday mobile game deals
Black Friday's upon us, and if you've happened to nab a fancy new phone during the week's big savings, you might be searching for some new games to fill up space on your new gadget. There are a lot of great games on sale right now for Black Friday... | Read more »
The best mobile games to play while your...
Thanksgiving is a time to reconnect with loved ones, eat lots of food, and all of that jazz, but once the festivities start to wind down, folks tend to head to the couch to watch whatever football is happening for Turkey Day. | Read more »
The best Black Friday deals for Apple ga...
Black Friday is hours away at this point, but many popular retailers are getting a jump on things with plenty of pre-Black Friday sales already available. Many of those early bird sales including some sharp discounts on the latest Apple phones... | Read more »
The Inner World 2 (Games)
The Inner World 2 1.0 Device: iOS Universal Category: Games Price: $4.99, Version: 1.0 (iTunes) Description: Solve mind-bending puzzles in a world full of mystery and save the family of the flute-noses! Their dynasty has been... | Read more »

Price Scanner via MacPrices.net

Apple 9″ 32GB iPad for $80 off on Walmart onl...
Snag a 9.7″ 32GB WiFi iPad for $249 on Walmart’s online store as part of their Black Friday sale. That’s $80 off MSRP, and it’s the lowest price available for an iPad so far this season. Sale price... Read more
Apple Black Friday sale for 2017: $150 Apple...
BLACK FRIDAY Apple has posted their Black Friday deals for 2017. Receive a $150 Apple gift card with the purchase of select Macs and up to $100 with various iPads, iPhones, and Apple Watches. The... Read more
Black Friday 2017: Where to find the best dea...
B&H Photo has 15″ and 13″ MacBook Pros on sale for up to $200 off MSRP as part of the Black Friday and Holiday sale. Shipping is free, and B&H charges sales tax for NY & NJ residents only... Read more
Black Friday 2017: Where to find the best dea...
B&H Photo has 12″ MacBooks on sale for $150 off MSRP as part of the Black Friday and Holiday sale. Shipping is free, and B&H charges sales tax for NY & NJ residents only: – 12″ 1.2GHz... Read more
Black Friday 2017: Where to find the best dea...
B&H Photo has 10.5″ iPad Pros in stock today and on sale for up to $130 off MSRP. Each iPad includes free shipping, and B&H charges sales tax in NY & NJ only: – 10.5″ 64GB WiFi iPad Pro... Read more
Black Friday 2017: Where to find the best dea...
B&H Photo has 13″ MacBook Airs on sale for up to $150 off MSRP as part of the Black Friday and Holiday sale. Shipping is free, and B&H charges sales tax for NY & NJ residents only: – 13″... Read more
Black Friday 2017: Where to find the best dea...
B&H Photo has 27″ and 21″ iMacs on sale for up to $200 off MSRP as part of the Black Friday and Holiday sale. Shipping is free, and B&H charges sales tax for NY & NJ residents only: – 27... Read more
Black Friday 2017: Where to find the best dea...
B&H Photo has Mac minis on sale for $100 off MSRP as part of their Black Friday sale, each including free shipping plus NY & NJ sales tax only: – 1.4GHz Mac mini: $399 $100 off MSRP – 2.6GHz... Read more
Black Friday 2017: Find the best deals and lo...
Scan our exclusive price trackers for the latest Black Friday 2017 sales & deals and the lowest prices available on Apple Macs, iPads, and gear from Apple’s authorized resellers. We update the... Read more
Black Friday: 27″ 3.4GHz iMac for $1599, save...
Amazon has the 27″ 3.4GHz Apple iMac on sale for $1599.99 as part of their Black Friday sale. That’s $200 off MSRP, and shipping is free. Their price is currently the lowest price available for this... Read more

Jobs Board

Information Systems Engineer, *Apple* Retai...
# Information Systems Engineer, Apple Retail Engineering Job Number: 112895982 Santa Clara Valley, California, United States Posted: 02-Oct-2017 Weekly Hours: 40.00 Read more
Commerce Engineer, *Apple* Media Products (...
# Commerce Engineer, Apple Media Products (New York City) Job Number: 113028813 New York City, New York, United States Posted: 20-Sep-2017 Weekly Hours: 40.00 **Job Read more
Business Development Manager, *Apple* Pay -...
# Business Development Manager, Apple Pay Job Number: 112919084 Santa Clara Valley, California, United States Posted: 18-Aug-2017 Weekly Hours: 40.00 **Job Summary** Read more
Digital Marketing Media Planner, *Apple* Se...
# Digital Marketing Media Planner, Apple Services Job Number: 113080212 Culver City, California, United States Posted: 03-Oct-2017 Weekly Hours: **Job Summary** Read more
*Apple* Retail - Multiple Positions - Apple,...
Job Description: Sales Specialist - Retail Customer Service and Sales Transform Apple Store visitors into loyal Apple customers. When customers enter the store, Read more
All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.