Apple launches magazine subscriptions for the iPad
As has been predicted for a while now Apple has announced the launch of a subscription service to all publishers of content-based apps on the App Store. From now on publishers can offer subs for magazines, setting both the price and the length of the subscription (weekly, monthly, bi-monthly, quarterly, bi-yearly or yearly).
Similar to standalone app purchases Apple processes all payments, keeping the same 30 percent share that it does today for other In-App Purchases.
"Our philosophy is simple-when Apple brings a new subscriber to the app, Apple earns a 30 percent share; when the publisher brings an existing or new subscriber to the app, the publisher keeps 100 percent and Apple earns nothing," said Steve Jobs, Apple's CEO. "All we require is that, if a publisher is making a subscription offer outside of the app, the same (or better) offer be made inside the app, so that customers can easily subscribe with one-click right in the app. We believe that this innovative subscription service will provide publishers with a brand new opportunity to expand digital access to their content onto the iPad, iPod touch and iPhone, delighting both new and existing subscribers."
In what looks like a sweetener to the publishing industry Apple is allowing publishers to sell subscriptions outside of the App Store (for example on their own website) without having to give 30% of the deal to Apple.
The most controversial part of the new subs deal surrounds customer privacy. Customers purchasing a subscription through the App Store will be given the option of providing the publisher with their name, email address and postcode when they subscribe.
This has angered many publishers who wanted the sign up process to be mandatory.
There is still a huge debate in the publishing industry over the effectiveness and business model of iPad app magazines. However several customer publishing agencies and brands have already successfully launched their own magazine apps.
