App Store terms and conditions updated to cover subscriptions

If you download The Daily (or any other app) from the App Store today, you'll be prompted to read and accept new terms and conditions. The update addresses subscriptions; something we and publishers have been anticipating and debating for a long time.

According to the new T&C, "Purchases of subscriptions to access the Services available through the Licensed Application are controlled, handled and processed by Apple and all payment and all other matters regarding such purchases (including any information you submit or that may be collected in connection with such purchases) are subject to and governed by the applicable Terms of Service and Privacy Policy of Apple. Accordingly, we encourage that you review Apple's policies prior to making any purchase."

During this morning's announcement, The Daily became the very first newspaper app in the store to offer customers a subscription option. Users can opt to pay either US$0.99 per week or $39.99 annually as a one-time payment from within the app. During the question and answer session that followed, Apple's Eddy Cue was asked if and when this model would be extended to other app store publishers. His only answer was "very soon." We can only assume that publishers' ears perked up at that comment.

For example, Time, Inc. and Apple have been at odds over the very model that The Daily uses for some time. In fact, Time went so far as to say that cost-cutting and other related problems have actually hindered the development of its Sports Illustrated app.

Now that the cat is out of the bag, we expect to see subscriptions roll out within the month, maybe even the fortnight. Eliminating per-issue costs should help to reduce the slide that iPad magazines are currently experiencing.