When the iPad was announced, Apple also announced that five major book publishers would bring content to the iPad. But there was no word about magazines or newspapers. Turns out the publishers are not quite happy with the way Apple handles the sales of these products. The publishers want more control over the pricing and subscriber information.
Apple uses a fixed 70/30 (70% for the publishers, 30% for Apple) split on all the items in the Apple store. Publishers find it hard to accept they "lose" almost a third on every sale they make. Especially with recurring payments, like subscriptions, this is hard to swallow.
And as always Apple refuses to share consumer information with the people they do business with. This is a big issue for the publishers since they use this information for marketing purposes or deciding what the content of their publications will be.
This two issues could be potential dealbreakers, but I doubt it will come that far. With physical newspaper sales declining even more every year I don't think the publishers will pass on the opportunity to increase sales.
More information:
http://www.ft.com/cms/s/0/6530db6e-1a70-11df-a2e3-00144feab49a.html?nclick_check=1
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