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 ( -- 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 ( 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 ( -- 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 .

"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" ( 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 -- 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


Community Search:
MacTech Search:

Software Updates via MacUpdate

Adobe Acrobat Reader 15.009.20069 - View...
Adobe Acrobat Reader allows users to view PDF documents. You may not know what a PDF file is, but you've probably come across one at some point. PDF files are used by companies and even the IRS to... Read more
Adobe Acrobat Pro 15.009.20069 - Powerfu...
Acrobat Pro DC is available only as a part of Adobe Creative Cloud, and can only be installed and/or updated through Adobe's Creative Cloud app. Adobe Acrobat Pro DC with Adobe Document Cloud... Read more
Path Finder 7.2 - Powerful, award-winnin...
Become a master of file management with Path Finder. Take full control over your file system. Save your time: compare and synchronize folders, view hidden files, use Dual Pane and full keyboard... Read more
Sid Meier's Civilization: Beyond Ea...
Sid Meier's Civilization: Beyond Earth is a new science-fiction-themed entry into the award-winning Civilization series. Set in the future, global events have destabilized the world leading to a... Read more
ForkLift 2.6.6 - Powerful file manager:...
ForkLift is a powerful file manager and ferociously fast FTP client clothed in a clean and versatile UI that offers the combination of absolute simplicity and raw power expected from a well-executed... Read more
Microsoft Remote Desktop 8.0.21 - Connec...
With Microsoft Remote Desktop, you can connect to a remote PC and your work resources from almost anywhere. Experience the power of Windows with RemoteFX in a Remote Desktop client designed to help... Read more
OnyX 3.1.0 - Maintenance and optimizatio...
OnyX is a multifunctional utility for OS X. It allows you to verify the startup disk and the structure of its System files, to run miscellaneous tasks of system maintenance, to configure the hidden... Read more
Spotify - Stream music, crea...
Spotify is a streaming music service that gives you on-demand access to millions of songs. Whether you like driving rock, silky R&B, or grandiose classical music, Spotify's massive catalogue puts... Read more
ExpanDrive - Access cloud storag...
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
Markly 1.5.3 - Create measurement and de...
Markly is a measurement and design-spec plugin/extension for Photoshop and Sketch. It is made for modern Web designers and app front-end developers. You can add specification marks simply by clicking... Read more

Balls & Holes - Tips and tricks to h...
Balls & Holes is a gorgeous new endless runner that challenges you to make it as far up a mountain as possible before inevitably being sliced into a load of gooey bits. Making this task more difficult are both the wide variety of balls that... | Read more »
Balloony Land offers a fresh twist on th...
Balloony Land by Palringo offers a fresh twist on the match three genre and is out now on iOS and Android. First-off, you'll be popping balloons instead of crushing candy and the balloons will float up and fill the empty spaces instead of dropping... | Read more »
Graphic - vector illustration and design...
Graphic - vector illustration and design 1.0 Device: iOS iPhone Category: Productivity Price: $2.99, Version: 1.0 (iTunes) Description: Autodesk Graphic is a powerful full-featured vector drawing and illustration application right in... | Read more »
Sago Mini Babies (Education)
Sago Mini Babies 1.0 Device: iOS Universal Category: Education Price: $2.99, Version: 1.0 (iTunes) Description: Introducing the Sago Mini babies. Boys and girls love caring for these adorable characters. Feed Robin her favorite mush... | Read more »
PAUSE - Relaxation at your fingertip (H...
PAUSE - Relaxation at your fingertip 1.1 Device: iOS iPhone Category: Healthcare & Fitness Price: $1.99, Version: 1.1 (iTunes) Description: | Read more »
Super Sharp (Games)
Super Sharp 1.1 Device: iOS Universal Category: Games Price: $1.99, Version: 1.1 (iTunes) Description: Your finger has never been so sharp! Cut with skill to complete the 120 ingenious physics levels of Super Sharp and become a cut... | Read more »
Assembly - Graphic design for everyone...
Assembly - Graphic design for everyone 1.0 Device: iOS Universal Category: Photography Price: $2.99, Version: 1.0 (iTunes) Description: Assembly is the easiest most powerful design tool on the App Store. Create anything you can... | Read more »
Dub Dash (Games)
Dub Dash 1.0 Device: iOS Universal Category: Games Price: $1.99, Version: 1.0 (iTunes) Description: ARE YOU READY FOR THE ULTIMATE CHALLENGE? UNIQUE SYMBIOSIS OF MUSIC AND GRAPHICS | Read more »
Leave Me Alone (Games)
Leave Me Alone 1.0 Device: iOS Universal Category: Games Price: $1.99, Version: 1.0 (iTunes) Description: 33% off launch sale!!! Somewhere between the 1980s and 1990s there exists a world that never was. A world of skatepunks,... | Read more »
YAMGUN (Games)
YAMGUN 1.0 Device: iOS Universal Category: Games Price: $2.99, Version: 1.0 (iTunes) Description: The invasion has begun! Protect the walls of the citadel against waves of enemies! But watch out, you will soon run out of ammo...... | Read more »

Price Scanner via

Apple Products Four Of 2015′s Top Ten Most Wa..., Future’s global technology brand and the UK’s biggest technology website, has unveiled results from extensive research that show • The Smart Home is what excites the public most about... Read more
13-inch 2.7GHz/128GB Retina MacBook Pro on sa...
Best Buy has the 13″ 2.7GHz/128GB Retina MacBook Pro on sale for $1174.99 for a limited time. Choose free shipping or free local store pickup (if available). Sale price for online orders only, in-... Read more
App Tamer 2.1 Makes El Capitan Cooler, Quiete...
St. Clair Software has announced the availability of a free update to its App Tamer utility for Mac OS X. App Tamer 2.1 delivers compatibility with Yosemite and improves its support for a number of... Read more
15-inch Retina MacBook Pros on sale for up to...
B&H Photo has 2015 15″ Retina MacBook Pros on sale for up to $160 off MSRP including free shipping plus NY sales tax only: - 15″ 2.2GHz Retina MacBook Pro: $1849.99 $150 off - 15″ 2.5GHz Retina... Read more
12-inch Retina MacBooks on sale for $100 off...
Best Buy has 12″ Retina MacBooks available for $100 off MSRP on their online store. Choose free shipping or free local store pickup (if available). Discounted prices available for online orders only... Read more
MacBook Airs on sale for up to $100 off MSRP
Save up to $100 on the purchase of a new 2015 13″ or 11″ 1.6GHz MacBook Air at the following resellers. Shipping is free with each model: 11" 128GB MSRP $899 11" 256GB... Read more
Save 15% with Apple refurbished Mac Pros
The Apple Store has Apple Certified Refurbished Mac Pros available for up to $600 off the cost of new models. An Apple one-year warranty is included with each Mac Pro, and shipping is free. The... Read more
Apple restocks refurbished Mac minis for up t...
Apple has restocked Certified Refurbished 2014 Mac minis, with models available starting at $419. Apple’s one-year warranty is included with each mini, and shipping is free: - 1.4GHz Mac mini: $419 $... Read more
TP-LINK Next-Gen Routers Support a Large Numb...
TP-LINK, specialists in consumer and business networking products, have announced the availability of Archer C2600, the company’s next-generation router featuring wireless AC, multi-user MIMO, and 4-... Read more
Apple refurbished 2014 MacBook Airs available...
Apple has Certified Refurbished 2014 MacBook Airs available starting at $679. An Apple one-year warranty is included with each MacBook, and shipping is free: - 11″ 1.4GHz/128GB MacBook Air: $679... Read more

Jobs Board

Project Manager: *Apple* Pay - Apple (Unite...
…The iOS Systems team is looking for a project manager who will manage Apple Pay server side integration project resources in a matrix organization, track tasks, prepare Read more
*Apple* Retail - Multiple Positions (US) - A...
Job Description:SalesSpecialist - Retail Customer Service and SalesTransform Apple Store visitors into loyal Apple customers. When customers enter the store, you're Read more
Validation Engineering Manager - *Apple* Wa...
…hardware and software development to lead the validation of the next generation Apple Watch and related products. The Validation Team works closely with many Read more
Senior Payments Architect - *Apple* Pay - A...
**Job Summary** Apple , Inc. is looking for a highly motivated, innovative and hands-on senior payments architect to join the Apple Pay Engineering team. You will Read more
*Apple* Retail for Business Support Supervis...
…is looking for a motivated, outgoing, and creative individual who wants to offer Apple Business Customers an unparalleled customer experience. The Apple Retail for Read more
All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.