There can be a ton of enthusiasm in the publishing world for Apple's new policy for subscription services--especially when it comes to give Cupertino a 30 percent share of the pie. But the juggernaut iPad may be too great for many publishers to risk pushing back.
The editors of popular science magazines and Elle said that make their publications available for subscription through Apple, but acknowledged Wednesday there will be some compromises. The audience-using iPad is too big and too lucrative--and demand for the subscription options is too nice--ignore.
"Of course, always we would like to see a lower Commission, but we can work with this Commission rate at this time," said Philippe Guelton, chief operating officer of Hachette Filipacchi Media U.S., Publisher of Elle. "The cost of developing our platform of electronic commerce are not economically sustainable. Apple offers a great turnkey tool that allows us to test with little or no financial risk. "
Group Publisher of Bonnier Corporation, Gregg were destined for Popular Science "In today's consumer marketing environment, we feel a 70 percent directly to the Publisher is a sustainable model and reasonable, we can work with," he added. "The public is, in our opinion, extremely valuable."
Elsewhere in the publishing industry, ranged from cautious optimism at revisions to silence on Apple's new policy, which allows customers to reactions can register for subscriptions through in-app purchases. Such subscriptions will be automatically get billed and renewed on iTunes user accounts. With this method, Apple takes 30 percent of the membership fee. Customers can subscribe outside the app, at company websites, but publishers are not permitted to provide links in-app for such a registration and Apple prices in-app subscription remain the same or less than their counterpart offers.
Time, Hearst, Conde Nast and Atlantic Media companies were among the major magazine publishers who have remained silent or declined comment Wednesday about their plans for iOS. Barnes & Noble, which makes available certain magazines on the iPad through its app Nook, offered a curt "Nook apps available on App Store for iPhone and iPad," said Mary Ellen Keating, a spokesman for the giant sale book. "Nothing farther from tender at this moment. "
But Rhapsody, subscription music service based on cloud, reacted with anger, pure and simple.
"Our philosophy is simple, too--an agreement imposed by Apple that obliges us to pay 30% of our revenue to Apple, in addition to the content that we have to pay fees for music labels, publishers and artists, is economically unsustainable," John Irwin, President of Rhapsody, said in a statement. He said that his company "will collaborate with our peers in the market to determine a proper legal and working on the latest developments."
Other publishers have responded more positively to the new rules of Apple. Richard Stephenson, CEO of London Yudu Media--that has built more than 60 apps for magazines ranging from Reader's Digest UK American Handgunner--said He wants to encourage publishers to put aside their reserves and plant their flag in the iOS platform. Commission of Apple may be a steep price, he suggested, but the simplicity of use of the subscription iTunes can bring a large number of subscriptions.
"We're a big believer in travel slick consumer," said Stephenson. "When you take people off the App Store, you lose a lot of people along the way, the dropout rate is pretty high".
There are so many iPad in circulation, Stephenson said, "any Apple charges, you must be there. Don't fight it, run with it.
Popular science have said already that his magazine sold upwards of 10,000 digital issues per month, $ 5 a pop. "Customers ' biggest Complaint was the lack of an option, and expects the new $ 15 a year, the magazine of the offering to be popular.
And some money lost in the boards of Apple might be composed with information about those subscribers. Customers will have the opportunity to share their name, email address and zip code with publishers. Even a partial collection of subscriber data will be useful to attract advertisers, is Stephenson and Have suggested.
"We are interested in being able to share with advertisers learn who is the buyer, in particular, our brand on tablets and ipads" Have said. "If we can help you learn more about who our readers … we think that is good for all".
Ted Nadeau, General Director of Elle group Digital, said the agreement will allow his magazine to focus on content, while Apple handles issues of money.
"This is good for the consumer," said Nadeau. "We are not in the payment processing business. We are happy to focus on our core strength to produce great content. "
For other Macintosh computing news, visit Macworld. Story copyright © 2010 Mac Publishing LLC. All rights reserved.
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