September 16, 2010 Leave a comment
Apple is looking to take as much as 30% from newspaper subscriptions sold through it’s app store, along with 40% of advertising sold through those subscriptions. The model is consistent with their app store and iAd revenues, but are Apple going too far? With when the iphone app store first appeared it was a new market, largely speaking. Apple offered developers (especially small developers) revenue opportunities through a new channel. The fact that Apple took a large chunck of that money was less of an issue as they were offering a platform which was not previously available.
There have since been a few moans about the iAd revenue split, but the latest idea of taking 30% from publishers could be a problem for Apple. Newspapers and magazine subscriptions is a long-standing market. Longer standing than the iPad and the internet. Many of the brands are well known and already have a customer base. So why would they want to allow Apple to take 30% from each subscription. The publishers would like to see a simple fee rather than a hefty revenue percentage. Whilst at the moment Apple dominate the tablet market, there is plenty of competition on the horizon with the likes of The Kindle and Android devices. Are Apple about to get too greedy?
Guardian report here.