According to a new report by All Things Digital, Apple and most publishers have still yet to agree on terms for offering a sanctioned subscription service through the iTunes store. The latest report comes nearly three months after rumors which suggested that Apple might have been close to formally announcing a deal with publishers. The main sticking point reportedly hangs on Apple’s unwillingness to give up user’s credit card information to the publishers who prefer to have these details for marketing purposes.
Apple is offering publishers a deal that allows them to sell in-app subscriptions through iTunes, from which the publishers will retain 70 percent of the revenue. As a compromise position, Apple has reportedly offered publishers the opportunity to ask users for a limited amount of information such as their name, mailing address and email address. However, publishers are pushing for Apple to offer them an even more attractive deal and are posturing that they might instead opt to go down the emerging Android tablet path instead.
However, not all publishers are holding out altogether as Newsweek is offering its magazine as a standalone subscription and have not demanded any user data in return. Time Warner has opted to include a free digital subscription for subscribers of its print version of People magazine.
With Apple holding as much as a 95 percent share of the tablet market, it would appear that it still holds the upper hand that at this point in negotiations.
Apple is offering publishers a deal that allows them to sell in-app subscriptions through iTunes, from which the publishers will retain 70 percent of the revenue. As a compromise position, Apple has reportedly offered publishers the opportunity to ask users for a limited amount of information such as their name, mailing address and email address. However, publishers are pushing for Apple to offer them an even more attractive deal and are posturing that they might instead opt to go down the emerging Android tablet path instead.
However, not all publishers are holding out altogether as Newsweek is offering its magazine as a standalone subscription and have not demanded any user data in return. Time Warner has opted to include a free digital subscription for subscribers of its print version of People magazine.
With Apple holding as much as a 95 percent share of the tablet market, it would appear that it still holds the upper hand that at this point in negotiations.
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