iPad to sell subscriptions to popular magazines
Apple has deals with Big 3 publishers
Apple Inc. (AAPL) in February introduced a platform for iPad users to purchase subscriptions for newspapers and magazines at iPad's App Store. But publishers have balked at the plan, which would give a 30% cut of the revenue to Apple and allow the Cupertino, California-based company to control personal information of the subscribers.
Apple, which has overtaken Google as the world's most valuable brand, has recently begun gain traction with the subscription platform, with new or looming deals with the Big Three publishers.
Hearst Corp. announced a deal last week to sell subscriptions to three of its magazines -- Esquire, Popular Mechanics and O, the Oprah Magazine -- for the iPad, using Apple's subscription model, beginning in July. Hearst will offer iPad editions of the three magazines for $1.99 per month or $19.99 a year. Print subscribers, however, will have fee access to the iPad editions. Hearst is one of the largest media companies, with interests in 15 daily and 38 weekly newspapers, and nearly 200 magazines around the world.
Early last week, Time Inc. announced it would begin offering iPad editions of magazines including Time, Sports Illustrated and Fortune to print subscribers of those titles. However, it hasn't said whether subscriptions would be sold at the App Store. Privately held Time Inc. has 20 US magazines and 45 corresponding websites in its portfolio. Its titles also include Entertainment Weekly, and People.
The New York Post reported that Conde Nast, owned by Advance Publications, Inc., would shortly start selling iPad subscriptions to the New Yorker. According to the report, Conde Nast would also sell subscriptions to seven other magazines, including Wired, Vanity Fair, GQ, Glamour, Allure, Self, and Golf Digest, by the month's end. The New York Post's Keith J. Kelly's said the single-issue price will be cut to $1.99 from the $4.99 per issue for the New Yorker and GQ and from $3.99 for Wired and Glamour.
Publishers have initially been apprehensive to Apple's digital subscription platform, as it would allow Apple to keep information that customers submit when subscribing to magazines in the App Store. Customer information is a valuable data that publishers use to woo advertisers. The publishers, however, also see an opportunity with the iPad since it would allow them to boost exposure and circulation.
The App Store has more than 350,000 apps and over 60,000 native iPad apps.