According to San Jose Mercury News, Apple is planning to bring newspaper subscription plans to the iPad.
Roger Fidler, head of digital publishing at the Donald W. Reynolds Journalism Institute in Columbia claims that Apple may take a 30 percent cut of the subscription revenue and 40 percent of the advertising revenue from newspaper publishers.
San Jose Mercury News reports:
The Cupertino company has agreed to provide an opt-in function for subscribers to allow Apple to share with publishers their information, which includes vital data that news organizations use to attract advertisers, industry sources say.
Publishers "want the data of their customers so they can integrate it into their circulation database so they know who their customers are," said Fidler, who works with many newspapers.
However, it looks like publishers are not too happy with the terms that Apple is offering:
Publishers wanted to pay Apple a fee rather than a cut of subscription and advertising revenue, and are not happy with Apple's terms, he said. They had hoped to offer app editions as part of subscription bundles that include print versions of the paper. Instead, they must use Apple as an intermediary with subscribers.
In my opinion, it is a win-win situation for Apple and publishers to bring newspaper subscription to the iPad. Apple needs to bring content to the iPad to make it even more successful while publishers have an opportunity to charge subscribers for digital content, which they have been offering for free on their website.
I currently use PressReader app (iTunes link) on the iPad, which offers a great user experience and also offers amazing value as it gives you unlimited access to more than 1500 newspapers for $29.99 per month (it makes sense only if your favorite newspapers are available). You can also access the content from your computer.
It needs to be seen if Apple will release an app that allows you to access digital newspapers just like iBooks for e-books with richer user experience or it will allow publishers to release iPad apps on the App Store that give users an option to buy subscription plans.
Would you be interested in buying a subscription plan for your favorite newspaper on your iPad or will you continue to access the free content available on their website? Let us know in the comments.[via San Jose Mercury News]