Apple rumored to reach subscription deal with newspapers
byDana Liebelson
Sep 15, 2010 in Digital Journalism
Apple is expected to unveil a new source of profit for struggling newspapers: iPad subscriptions. Although a few national newspapers already offer digital subscriptions, major metropolitan newspapers will soon be offering content on Apple apps, according to California's San Jose Mercury News.
The iPad is a tablet computer launched by Apple in 2010 that can be used to stream media and sync to the Internet. Users can buy media applications from among thousands of applications sold through the online Apple store.
Earlier in the year, negotiations stalled over whether news publishers would be able to receive Apple subscribers' personal information -- a valuable resource for attracting advertisers. According to the new report, Apple has agreed to give subscribers the option to share their information.
Roger Fidler, head of digital publishing at the Donald W. Reynolds Journalism Institute, told Mercury News that Apple will likely take a 30 percent cut of subscriptions, and a 40 percent cut of advertising revenue -- terms publishers are rumored to be unhappy with.
iPad users are already speculating about the appearance of the app, and are concerned that Apple will simply provide low-quality scanned versions of newspapers.
As a consumer, would you read your favorite newspaper on your iPad? Would you provide newspapers your subscription information?
As a journalist or editor, do you think this is a sustainable revenue source?