“Apple is expected to announce soon a new subscription plan for newspapers, which hope tablets like the iPad will eventually provide a new source of profit as media companies struggle with declining print circulation and advertising revenue,” John Boudreau reports for The San Jose Mercury News.
A”pple did not respond to a request for comment,” Boudreau reports. “But Roger Fidler, head of digital publishing at the Donald W. Reynolds Journalism Institute in Columbia, Mo., said Apple probably will take a 30 percent cut of all subscriptions sold through the company’s online App Store, and as much as 40 percent of the advertising revenue from publications’ apps.”
“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,” Boudreau reports. “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.”
Boudreau reports, “While a handful of national papers already offer app subscriptions to iPad users, major metropolitan papers across the country are getting ready to roll out their own publication apps and have been in discussions with Apple.”
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