Apple in Talks to Add Subscription Periodicals to the iPad

If Apple gets its way, the next big wave of content to hit iTunes might be magazine and newspaper subscriptions.

The Wall Street Journal is reporting that Apple is trying to convince publishers to offer newspaper and magazine subscriptions for the iPad through Apple’s own portal.

Even before the iPad was launched, rumors of this sort of arrangement were already underway. Many of the Western world’s biggest publishers, including Time Inc., Hearst and Condé Nast, released iPad-optimized magazines or newspapers to coincide with the product’s release.

However, magazines have been limited to single issue sales. Some apps notify a user when a new issue is available, but at $4 or $5 an issue, most users are unlikely to forego a print or online subscription for iPad content.

The big hold-up with bringing subscriptions to the iPad has reportedly revolved around user data and, of course, money. Publishers often use their subscriber database to better target customers and to entice advertisers. Apple reportedly doesn’t want to give publishers such easy access to customer information.

Additionally, Apple would likely want to take a 30% revenue cut off any subscriptions sold within iTunes, the same as it does for apps, music, books and video files now.

Both of these points are contentious with publishers, who have acquiesced by selling issues individually or are trying to either build apps that are really just portals to subscriber-only websites (à la The Wall Street Journal) or apps like Zinio that are PDF portals of sorts on their own.

Of course, the big promise with the iPad has been that it is an opportunity for publishers to redefine magazine or newspaper content by making it more engaging and interactive rather than just being a facsimile of the print edition.

Publishers who are looking at ways to combat declining print sales may be able to use Apple’s 160-million strong iTunes customer base to help boost sales. That might be worth a trade-off of control and profit.

For Apple, having unique arrangements with publishers to offer compelling subscription content that is auto-delivered to iOS devices could be a big differentiating factor between the iPad and future competing devices.

Apple’s foray into the world of e-books remains small, especially when compared to market giant Amazon.com, but the iPad has the ability and the form factor to provide a much more compelling experience for subscription content.

We’ve reached out to several publishers for comment on this story and have not heard back. We’ll keep following this story for future developments.

In the mean time, let us know what you think of iPad-tailored subscriptions for newspapers and magazines? Do you currently read print publications? Would you be more or less likely to subscribe to a tablet-friendly digital version? Let us know in the comments.

[via mashable]

Posted in: Apple