Publishers may be reluctant to launch iPad versions

Posted by Alisa Zykova on February 18, 2010 at 8:15 AM

Newspaper and magazine publishers may be reluctant to jump on the iPad bandwagon, suggests ArsTechnica. Possible reasons include the 30 percent commission that Apple takes as well as the firm's policy of not sharing customer data.

Publishers view information about their subscribers as valuable since it may affect marketing plans and an outlet's content, the Financial Times (FT) reported.

We must keep the relationship with our readers," said Sara Öhrvall, senior vice-president of research at Swedish publishing group Bonnier. "That's the only way to make a good magazine."

Publishers may not agree with Apple handing out nearly a third of subscription sales over an undefined time frame. An anonymous media execute told the FT that 30 percent forever may change the economics.

A New York Times source said print circulation would determine the iPad edition, because it is viewed as "another way to distribute the paper," according to Gawker. This implies between US$20 to $30 per month, a price that may prevent readers from cancelling their print paper subscriptions. Meanwhile, those in charge of digital operations are prepared to charge around $10 per month for the iPad version.