New York Times Agrees To Apple Terms For Paywall Plans | Peter Kafka | MediaMemo | AllThingsD. The New York Times has finally unveiled its paywall plans, a year-plus in the making. And with the Times’ announcement, Steve Jobs gets his first big publisher to announce it is signing on with his new subscription plan: The Times says it will sell access to the paper’s apps through iTunes, on Jobs’ new terms. That means that the Times will give up 30 percent of every subscription it sells through Apple. And the Times will also lose access to valuable subscriber data for those sales, too. But clearly the Times has decided that it’s better to work with Steve Jobs than to ignore altogether the market he’s created. That doesn’t mean that subscribers who want access to the Times on their iPad or iPhone have to buy access through iTunes, just that they can. And that the Times will comply with Apple’s new rules for any of those sales.
The Times says its paywall packages will also work with Google’s Android platform, as well as Research In Motion’s Blackberry. Next Question: What’s A Publishing App? We created subscriptions for publishing apps, not SaaS apps. —email attributed to Steve Jobs There’s been so much confusion in the wake of Apple’s new subscription billing policy for apps that Steve Jobs felt the need to issue the proclamation above via his preferred method, a personal email. (It’s his version of the burning bush).
While Apple’s new policy clearly states that all subscriptions for purchasing “content, functionality, or services in an app” must go through Apple, Jobs suggests that Apple will make a distinction between “publishing apps” and “SaaS apps” (software as a service). Apps like Salesforce or Evernote, for example, operate under an SaaS subscription, and are available to the same subscribers on the Web and other devices besides the iPhone. Apple appears to be backtracking here. The stakes here are very high. A broad, vague, inconsistently applied, greedy, and unjustifiable rule doesn’t make developers want to embrace the platform.
But what is a news publishing app? Launches Subscriptions on the App Store. XercesTech. For the past few weeks, rumors have been flying around the web that Apple might begin asking content providers like Netflix or Amazon for 30% of their subscription and content sale revenue in certain situations. As you would expect, this has created quite a firestorm of outrage among users and pundits alike. While the rumor is mostly true (more on that in a moment), it’s important to understand how Apple handles billing and developer revenue sharing on the App Store to provide some context for the current situation. Apple does a lot of work to keep the App Store running. They maintain the servers, they pay for all the internet connectivity for those servers so people can download Apps 24/7, they provide DRM services and billing for all Apps.
For their efforts, Apple takes a 30% cut of App Store sales revenue, and developers get to keep the other 70%. Whether Apple deserves to be paid in those situations is certainly a matter of debate, but I don’t think they do. Apple, Google and the Publishers: Here’s How to Make Subscriptions Work | John Squires | Voices | AllThingsD. In recent weeks, we’ve heard growing concern from magazine and newspaper publishers regarding the challenge of providing content for mobile media while preserving their print franchises.
The concern is nothing new, but it’s apparent that content providers are at risk of losing track of their customers like toddlers in a shopping mall. Apple’s iPad success and the imminent release of new application distribution platforms from Google and other software companies threaten another seismic shift for publishers that may have far greater impact on their business models than the growth of free media on the web. Devices like the iPad offer consumers a rich reading experience and offer publishers even more targeted advertising, but the revenue tradeoff as publishers navigate the path from print to this new world is lopsided–and not in a good way. Data informs advertising in magazines and allows for better targeting.
Should we care? Here’s why: The Advertising Model Won’t Pay. Despite Pushback From Pubs, Apple Will Make iTunes Subscription Billing Mandatory. When Rupert Murdoch’s The Daily launched last week, Apple’s VP Eddy Cue got on stage to announce one-click subscriptions for iPad publications through iTunes. The Daily already has the one-click billing option as a feature, and Cue promised it would be made available to other iPad newspaers and magazines soon. Cue then started to make the rounds of print media companies in New York City to explain how subscription billing will work on the iPad. Who will have control over subscriber revenues and data has long been a point of contention between print publishers and Apple. The magazine and newspaper companies want to be able to control subscription billing by sending readers to their own sites to process iPad app subscriptions, but Apple is insisting that they use iTunes. It is a brilliant countermove. The print media companies want to control subscriptions for a couple reasons.
European Newspaper Publishers Association. Publishers call for access to newspapers on tablets for subscribers without restrictive conditions Brussels, 7th February, 2011 - The European Newspaper Publishers’ Association (ENPA) today called on technology companies to ensure that newspaper subscribers can continue to enjoy access to news content on tablets and other online services, without any restrictive conditions. Newspaper publishers spoke out following indications by Apple in many European countries that it may bring in new conditions for both online subscribers to newspapers and also for print subscribers, who have until now enjoyed access to their newspaper on iPad.
In future, consumers may only have access to the newspaper of their choice via the iTunes store, where the transaction would be subject to commission. Moreover, newspaper publishers would no longer have access to important information about the readers of their digital publications. In a statement, ENPA made the following points: Subscription billing comes to the App Store. While today marks the release of The Daily, the first newspaper designed specifically for the iPad, it actually marks a much more significant shift for Apple’s iOS platform.
The Daily is also the first iOS App to feature native subscription billing, integrated with the iTunes store just like the in-app purchases that have been around since iOS 3.x was released back in 2009. Apple updated the iTunes store terms and conditions just a short while ago with some of the finer details of how it all works. Subscription terms and conditions Like most content in the iTunes Store, and like most Apps in the App store, subscription content sales are final, and there are no refunds. Once you authorize the subscription, it will automatically bill you 24 hours before the next subscription period starts. In the event that the subscription price is raised by the content provider, automatic payments will be turned off by Apple until you have a chance to approve the new higher price. Stay tuned! Ongo… where? Ongo is an ambitious digital kiosk. Launched last week, it was founded last year by Alex Kazim, a high-tech executive who worked at Ebay, Skype and PayPal.
Kazim lined up an impressive group of investors: Gannett, The New York Times, The Washington Post and the venture capital firm Elevation Partners whose portfolio includes Facebook, Yelp and Palm (now part of HP). Altogether, Ongo raised $12m, an unusually large amount for such a project (marketing activities will consume a large fraction of the company’s funding). Headquartered in Cupertino, California, led by a mechanical engineer, Ongo carries more Silicon Valley DNA than its media siblings. As an advocate of greater technology input in media companies, I’d say it’s a good thing. Up to a point. Let’s have a look. Business-wise, Ongo is a paid-for kiosk. In this simulation, I’m getting five publications for free. Am I missing something? First, on the web or on the iPad, Ongo is flat and dry. The result isn’t convincing. Apple’s bet on publishing. Apple’s upcoming subscription plan is making large publishing companies hysterical.
Rightfully so. Some of them built a complete business model for the iPad based on a commercial agreement that is now being revoked. Apple is not only changing the rules, but it does so in the worst possible way — in their usual cold My Way Or The Highway manner. But one of the most interesting aspects of the maddening change is the strategic thought behind Apple’s move. Let’s rewind the tape. When publishers began to create content applications for the iPhone and the iPad, they found the in-app purchase feature was the perfect monetization tool: one click on the “buy for $0.99″ button… another on “confirm”… Done.
Weirdly enough, breaking its well-known controlling habit, Apple left open the possibility for the publisher to sell subscriptions directly to the reader. In the treacherous transition to digital, retaining control over subscriptions is crucial. No kid gloves in Apple’s secretive world. Bam! Tablet strategies evolve. Magazines Pursue Tablets, but iPad Limits Subscriptions. Photo illustration by The New York Times Since Apple introduced the last year, publishers have poured millions of dollars into apps in the hopes that the device could revolutionize the industry by changing the way magazines are read and sold to consumers. But at the same time, the industry is discovering a lesson already learned by music labels and Hollywood studios: Apple may offer new opportunities with its devices, but it exacts a heavy toll.
Magazine publishers argue in particular that limiting magazine sales on the iPad to single issues (except in a handful of cases) has hamstrung publishers from fully capitalizing on a new and lucrative business model. “If you look at the Apple store,” said David Carey, president of Hearst Magazines, which offers five publications on the iPad, “the most common reason that people give an app a low rating is that it lacks a subscription option.
Subscriptions are another sticking point. “We feel strongly that it’s too early to pick a winner,” Mr. De Standaard Online - Ingrid Lieten roept uitgevers samen. Minister van Media Ingrid Lieten (SP.A) roept deze week de Vlaamse uitgevers samen om te overleggen over hun conflict met de Amerikaanse computerreus Apple. Van onze redacteur Vorige week ontvingen twee uitgevers die hun kranten of tijdschriften ook op de iPad aanbieden, het Nederlandse NRC Media en het Belgische Roularta (Knack) , bericht dat hun iPad-app niet in overeenstemming is met de regels van de iTunes App Store. Ze zouden hun abonnementen voortaan moeten verkopen via die onlinewinkel van Apple zelf. Minister Ingrid Lieten (SP.A): 'Fantastische nieuwe technologie, zoals de iPad, laat de mensen toe om het nieuws digitaal te volgen.
Maar het baart me ook zorgen. Volgens Lieten bestaat het risico dat bedrijven als Apple een monopolie uitbouwen. Het bericht dat NRC en Roularta vorige week van Apple ontvingen, zegt dat voortaan alle abonnementen op inhoud die op de iPad wordt gelezen, moeten worden verkocht via de iTunes App Store. De Standaard Online - Apple jaagt kranten op stang. Apple verandert de regels voor krantenuitgevers. Die reageren verrast, en overwegen hun ambitieuze iPad-plannen op te schorten. De romance tussen Apple en de krantenuitgevers zou wel eens over kunnen zijn. De jongste maanden kreeg zowat elke krant een digitale versie voor de Apple iPad. Maar sommige uitgevers hebben de afgelopen dagen van Apple te horen gekregen dat ze hun abonnementen voortaan op een andere manier moeten verkopen. De veranderingen vallen sterk in het nadeel van de kranten uit. Apple zou de kranten tot 31 maart geven om hun apps in regel te brengen.
Vanaf dat moment zouden krantenabonnementen in iPad-vorm nog alleen mogen worden verkocht via de iTunes App Store, de eigen online winkel van Apple. NRC werd van deze nieuwe regels op de hoogte gesteld via e-mail. The iPad is Great But Remember—It’s Apple’s Way or the Highway - Matt Kinsman - Blogs emedia and Technology. Magazine publishers are scrambling to be on the iPad and why not? Wired saw 73,000 downloads in the first nine days after its iPad edition launched and editor-in-chief Chris Anderson anticipated iPad downloads beating newsstand sales (which average mid-80,000) in June without cannibalizing print sales.
IDG's PCWorld and Macworld went from 600 monthly downloads COMBINED with their digital editions to 8,000 downloads with their iPad version. With the iPad (and the slew of tablets expected to hit the market), publishers have finally found a format online. But getting an app approved can be a frustrating ordeal, especially when publishers find out at the 11th hour that their proposal has been rejected (in what increasingly seems to be arbitrary fashion). We’ve often heard that “the newsstand model is broken.” By Matt Kinsman -- Post Comment / Discuss This Blog - Info/Rules <a href=" Figuring out magazine subscriptions in the iPad age. After being actively courted by Apple CEO Steve Jobs, several magazine publishers have launched digital versions of titles like Wired, Popular Science, Time, and People targeted toward iPad owners.
Most of these digital versions include more than just text and pictures—some offer video and audio, others include interactive diagrams. While consumers seem to like the idea of carrying interactive magazines around in one compact device (not unlike the appeal e-books have), they have mostly balked at paying premium prices for each individual issue. Time Inc. has reached a deal with Apple to allow regular print subscribers access to issues for free, but the compromise still leaves room for improvement.
Most digital magazines consist of a "container" reader app that offers access to individual issues via in-app purchasing. These typically sell for $3-5 per issue. But reading through the reviews on most such apps, it's clear that many readers don't relish ponying up cash for each issue. De Tijd: Apple neemt met iPad uitgevers in de tang. Why Media Companies Shouldn't Accept Apple's Subscription Plans (by @baekdal) #publishing. As you are probably already aware of, there is a lot of talk about Apple's plans for subscription coupled with a "newsstand" for the iPad.
It's bad, really bad. The short story is this. Apple is currently working on a new "App store" called the "newsstand," that will feature apps made specifically within the category of news. This will give companies like the Wall Street Journal, Conde Naste etc. a high-visibility place for them to sell their news papers and magazines via the iPad. It is expected that Apple will announce it in a couple of months, but it is probably not going to launch until the next generation iPad hits the market early next year. As part of this, Apple is also adding subscriptions to the app store, allowing app owners (and newspapers specifically) to charge a recurring fee, as opposed to selling single-copies.
Apple will take their usual 30% cut and keep all the customer data (since you are paying to the App store). Marvel Let me give you one example.