Apple Could Be Planning Newspaper Subscription Service for iPad -AppleInsider
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Apple Inc. (NASDAQ: AAPL) is rumored to soon announce a newspaper subscription plan for the iPad with a similar sales model to that of its AppStore, a report from AppleInsider said Wednesday.
According to sources at San Jose Mercury News which were cited in the report, Apple will implement a function to allow users to opt-in to share personal data with publications that will, in turn, use the information to sell advertisements tied to certain demographics.
“Earlier this year, before the iPad was even released, publishers and Apple apparently struggled to reach a deal, as Apple was reluctant to share consumer data beyond sales volume,” The AppleInsider report said. “Advertisers and publishers, on the other hand, consider demographic data to be the most valuable asset."
The model would give Apple a 30 percent piece of all subscriptions sold through the digital download service, while at the same time receiving as much as 40 percent of all advertising revenue from those applications.
Publishers are not pleased with the idea of sharing subscription and advertising revenue with Apple, and instead would like to pay a fee.
The functionality of the iPad has offered the newspaper publishing industry -- an industry which has been hemorrhaging for several years as the Internet has eliminated the need for many paper subscriptions -- a potential new source of revenue.
Shares of Apple are up $1.84 to $269.90 in midday market movement on Wednesday.
According to sources at San Jose Mercury News which were cited in the report, Apple will implement a function to allow users to opt-in to share personal data with publications that will, in turn, use the information to sell advertisements tied to certain demographics.
“Earlier this year, before the iPad was even released, publishers and Apple apparently struggled to reach a deal, as Apple was reluctant to share consumer data beyond sales volume,” The AppleInsider report said. “Advertisers and publishers, on the other hand, consider demographic data to be the most valuable asset."
The model would give Apple a 30 percent piece of all subscriptions sold through the digital download service, while at the same time receiving as much as 40 percent of all advertising revenue from those applications.
Publishers are not pleased with the idea of sharing subscription and advertising revenue with Apple, and instead would like to pay a fee.
The functionality of the iPad has offered the newspaper publishing industry -- an industry which has been hemorrhaging for several years as the Internet has eliminated the need for many paper subscriptions -- a potential new source of revenue.
Shares of Apple are up $1.84 to $269.90 in midday market movement on Wednesday.
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