If publishers were looking to Apple and the iPad to save the dying print industry, they probably realize now there are a few roadblocks to deal with along the way. One of them is Apple themselves, who is thus far refusing to allow publishers to sell magazine subscriptions within their applications.
AppleInsider is reporting that publishers have become increasingly frustrated with Apple’s business model for the App Store as the company is blocking their efforts to sell subscriptions on their publications without an explanation.
It appears to have started last month, when publisher Time Inc. submitted a subscription version of their Sports Illustrated iPad app, only to see it rejected by Apple at the last minute. According to MediaMemo’s Peter Kafka, the magazine was then forced to sell single copies of the publication, which come with a higher price tag.
The irony is that the publishers are only trying to give the people what they want: Reviews for magazines like Sports Illustrated are “overwhelmingly negative” due to the current $4.99 per issue price tag, with 97 out of 146 reviews giving the slick application only one star (the average is only two stars).
"Not gonna pay what SI charges per issue," user Russ1409 writes in a user review. "Lower the cost, SI, get behind the new technology, but don't gouge us."
The reality is that Time Inc. executives “have been going nuts” trying to get Apple to approve subscriptions, which have historically been a major part of their business model -- not only for recurring revenue, but also for customer data used in advertising. Time Inc. officials were reportedly “startled” by Apple’s chilly reception after making a major effort to reach out to them.
"So what happened?" Kafka queries. "The Time Inc. insiders I talked to don't have a clear answer, presumably because they can’t get one from Apple itself. One theory: Apple is concerned about the publisher’s plans for the consumer data it would collect with each subscription. A darker one: Steve Jobs loves the idea of digital magazines and wants to control the market for himself."
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joekomar
July 28, 2010 at 5:59pm
I've been subscribing to multiple magazines through Zinio. The National Geographic mag looks wonderful on my iPad
If Apple doesn't want the subscription model than Zinio should sweep in and provide the service for Time and others. .
Loup407
July 28, 2010 at 1:09pm
I subscribe to 30+ magazines. As my print subs expire, as available I've been subscribing through Zinio, although the choice is somewhat limited. I'd far prefer to buy a subscription to an iPad-compatible version, rather than have to do 12 transactions per year. Have been (for a short time) in the magazine business, I know the cost of paper, printing, and mailing are extraordinary; so, at very least, I'd expect to NOT pay any more than the cost of a print sub. Real revenue in most magazine models comes in from ads anyway, although I expect that iPad readership numbers will be low for a while. Nevertheless, Apple should figure this out. I'd love to eliminate all that paper, but I won't pay for the privilege.
kromattik
July 28, 2010 at 7:17am
Time should just charge a reasonable amount for the digital copy and not do subscriptions instead of being greedy. Someone should do a study to show how much it costs a magazine company to print and mail a magazine to a subscriber. Subtract that from the per issue rate a magazine subscriber pays per issue and then make THAT the price of the digital issue.
