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Apple officially launches App Store subscriptions
When Apple's Eddy Cue, Rupert Murdoch and others launched the iPad-only newspaper The Daily, Cue promised that its subscription model would be made available to other iOS publications soon. Today, Apple has officially launched App Store subscriptions. Subscriptions are purchased through the apps themselves using the same billing system that the App Store has employed for in-app purchases. Individual publishers are able to set their own prices and lengths of subscriptions. As for Apple, it takes the same 30 percent share that it currently pulls from other in-app purchases. Customers can manage their subscriptions from a special account page, and cancel a subscription when they're ready. In a press release, Steve Jobs explained the pricing model, saying, "...when Apple brings a new subscriber to the app, Apple earns a 30 percent share; when the publisher brings an existing or new subscriber to the app, the publisher keeps 100 percent and Apple earns nothing. All we require is that, if a publisher is making a subscription offer outside of the app, the same (or better) offer be made inside the app, so that customers can easily subscribe with one-click right in the app." Note that publishers may not provide links in their apps to purchase options outside of the app (like a subscriber website). This has been a long time coming. Now for the big question: will people subscribe to magazines and newspapers on their iPads? Show full PR text CUPERTINO, California-February 15, 2011-Apple® today announced a new subscription service available to all publishers of content-based apps on the App Store℠, including magazines, newspapers, video, music, etc. This is the same innovative digital subscription billing service that Apple recently launched with News Corp.'s "The Daily" app. Subscriptions purchased from within the App Store will be sold using the same App Store billing system that has been used to buy billions of apps and In-App Purchases. Publishers set the price and length of subscription (weekly, monthly, bi-monthly, quarterly, bi-yearly or yearly). Then with one-click, customers pick the length of subscription and are automatically charged based on their chosen length of commitment (weekly, monthly, etc.). Customers can review and manage all of their subscriptions from their personal account page, including canceling the automatic renewal of a subscription. Apple processes all payments, keeping the same 30 percent share that it does today for other In-App Purchases. "Our philosophy is simple-when Apple brings a new subscriber to the app, Apple earns a 30 percent share; when the publisher brings an existing or new subscriber to the app, the publisher keeps 100 percent and Apple earns nothing," said Steve Jobs, Apple's CEO. "All we require is that, if a publisher is making a subscription offer outside of the app, the same (or better) offer be made inside the app, so that customers can easily subscribe with one-click right in the app. We believe that this innovative subscription service will provide publishers with a brand new opportunity to expand digital access to their content onto the iPad, iPod touch and iPhone, delighting both new and existing subscribers." Publishers who use Apple's subscription service in their app can also leverage other methods for acquiring digital subscribers outside of the app. For example, publishers can sell digital subscriptions on their web sites, or can choose to provide free access to existing subscribers. Since Apple is not involved in these transactions, there is no revenue sharing or exchange of customer information with Apple. Publishers must provide their own authentication process inside the app for subscribers that have signed up outside of the app. However, Apple does require that if a publisher chooses to sell a digital subscription separately outside of the app, that same subscription offer must be made available, at the same price or less, to customers who wish to subscribe from within the app. In addition, publishers may no longer provide links in their apps (to a web site, for example) which allow the customer to purchase content or subscriptions outside of the app. Protecting customer privacy is a key feature of all App Store transactions. Customers purchasing a subscription through the App Store will be given the option of providing the publisher with their name, email address and zip code when they subscribe. The use of such information will be governed by the publisher's privacy policy rather than Apple's. Publishers may seek additional information from App Store customers provided those customers are given a clear choice, and are informed that any additional information will be handled under the publisher's privacy policy rather than Apple's. The revolutionary App Store offers more than 350,000 apps to consumers in 90 countries, with more than 60,000 native iPad™ apps. Customers of the more than 160 million iOS devices around the world can choose from an incredible range of apps in 20 categories, including games, business, news, sports, health, reference and travel. Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork, and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple is reinventing the mobile phone with its revolutionary iPhone and App Store, and has recently introduced its magical iPad which is defining the future of mobile media and computing devices.
The French gain a 3D iPad Newstand
We've heard much talk of a virtual NewsStand for the iPad, but have yet to see one, until now. It seems, the French are the first to get a selection of magazines available on the iPad all from one app -- in virtual 3D, no less. Le Kiosque, by LeKiosque.fr, is a free iPad app that sells magazines via in-app purchase. According to the Le Kiosque iOS App Store description (with the aid of some nifty Google translation in tow), the app has a 3D kiosk interface with more than 400 magazines available at up to 70% off the real-world, glossy-paper equivalent. Once you've purchased your favourite mag, you can view it straight away via "streaming playback" -- no download wait times. There's also an off-line mode as well as access to archived back issues. From what we can gather (with the aid of Google Translate, once again), according to a telephone interview conducted by FRECHWEB.FR with Le Kiosque's head of marketing, Michael Philippe, two months of negotiations were held between Apple and the Le Kiosque team before the app was approved. Apparently, Le Kiosque was hoping to offer subscription-based content, but Apple refused. Where've we heard that before? Though in French, Le Kiosque is available in the US and UK iOS App Stores with some daily news content in English. Check out a video of the app in action after the break. [Via 9 to 5 Mac, FRENCHWEB.FR]
WSJ: Google plans a 'digital newsstand' to unite all newspapers and magazines under Android's umbrella
The Wall Street Journal has rounded up its cabal of sources today to present another delicious new battlefield in the struggle between Google and Apple for mobile supremacy. Specifically, it reports that the Mountain View team has approached Time Warner, Condé Nast and Hearst -- three of the biggest publishers of periodicals in the US -- with a view to offering their content through a Google-operated "digital newsstand" for Android devices. The appeal for media companies will be an easier route to monetizing their content, apparently, including the possibility that Google could take a smaller slice of revenues than the 30 percent charged by Apple and Amazon. There's also word of developments behind the scenes at Cupertino, where "several changes in iTunes" are expected to improve the publisher's experience of using the service, including making it easier to offer long-term subscriptions and related discounts. Apple's had nothing to say on the matter, while Google's responded by noting it's always in discussions with publishers and has nothing to announce at this point.
Copia's 'social reading' platform goes live, abandons hardware plans
We might be busy refilling our inkwells in preparation for CES 2011, but let's not forget that some of the CES 2010 exhibitors are still working feverishly on bringing their innovations to market. Copia is one such company, though in the time between its January debut and today it's had to abandon its plans for own-brand e-readers and has fully transitioned itself into a software offering -- with apps available for the desktop, iPad, Windows Phone 7 now, and Android and other touch devices following soon. Copia allows Facebook Connect logins, which should give you a hit at its premise -- it aims to meld an ebook store in with a vibrant and active online reading community, with a litany of social and sharing features making it perhaps more attractive than the somewhat more limited social skills on offer from the current ebook market leaders. Unannounced OEM partners have been engaged to deliver the Copia platform on upcoming e-reading devices, though whether the whole thing sinks or swims will be entirely up to you, the user. See a video demo of what Copia's about after the break.
iPad affecting newspaper sales
Today at the Monaco Media Forum, another nail was pounded into the coffin of that cornerstone of traditional media, the newspaper. News Corp's Asian/European operations lead, James Murdoch, noted that the switch to iPad and other mobile reading apps has had a direct effect on newspaper sales. Murdoch said that the apps were "much more directly cannibalistic" than web sites, as subscribers read the apps in a manner similar to how they read traditional newspapers. Web readers apparently consume their news somewhat differently. While he didn't disclose sales numbers, Murdoch said that the newspapers affected include the Wall Street Journal, News of the World, and the Times of London. News Corp isn't making as much money on subscriptions through mobile apps, but is happy with selling news through the iTunes model. Apple's 30% take isn't that bad when the cost of printing and distribution of traditional newspapers is taken into account. Murdoch mentioned that "the guy on the newstand and the newsagent charge a percentage, and they don't even merchandise it properly." While the iPad is the current leader in electronic news sales, News Corp just delivered an Android tablet version of the Wall Street Journal yesterday and also provides a version for the Amazon Kindle and other e-readers.
News publishers looking to the Galaxy Tab and BlackBerry PlayBook for refuge as well
In case you were worried that it was just Apple love that got major news outlets on the iPad so quickly, you should know that the general sense of desperation (or is it their never ending sense of adventure?) pervading the likes of the The New York Times, The Wall Street Journal, and USA Today has them building apps for the Galaxy Tab as well. The news comes courtesy of The Wall Street Journal, and has yet to be announced officially by the parties involved -- though we have a hard time doubting any of it. It makes sense, of course: the big cost is producing content for a tablet form factor, not building the reader app, and the Galaxy Tab naturally won't be the last of its Android kind. The WSJ and The Financial Times are also apparently some possible gets for RIM's PlayBook, though less is known about those deals. On the Tab, The New York Times is supposed to be pre-loaded with some carrier's versions of the device, and its app will be free until January of next year when The Times starts charging for its website.
Rumor: Apple's newspaper subscriptions could debut next month
Last week the Mercury News reported that Apple is working on plans to sell newspaper subscriptions to iPad owners. Today, a follow-up from the Wall Street Journal suggests that it could launch as early as next month, and will include magazines as well. While Apple declined to comment, the WSJ's sources note that plans are moving forward, even though publishers are hesitant. Some see Apple's dominance over the online music market as foreboding, while others are leery of Apple's typical 30 percent cut. Among the reportedly agreeable publishers is Hearst, which owns huge properties like the Oprah Winfrey magazine, Esquire, Cosmo (admit it, you take the quizzes) and The Houston Chronicle, among others. I've used the current Popular Mechanics app, another Hearst product, and love it. Also in contention is data that publishers use for their marketing efforts, like name, email addresses, subscription histories and more. Apple reportedly doesn't want to turn it over, and publishers want it. I'm hoping it works out, because I find I'm reading newspapers more than I have in decades since buying my iPad. Also, I'd love to have a regular subscription to my old hometown paper delivered to me digitally every day.
Rumor: Apple will announce newspaper subscription plan
Mercury News is reporting that Apple will soon announce a plan for subscribing to newspapers with the iPad. While Apple did not comment, the Mercury News speculated on Apple's deal with Roger Fidler, head of digital publishing at the Donald W. Reynolds Journalism Institute. Fidler believes that Apple will take up to a 30% cut of subscriptions on top of 40% of ad revenue. In exchange, the newspapers' developers will be allowed to provide customers with a way to share statistics on just who they are. The opt-in feature will allow Apple to share user demographic data with the publishers, which they could then direct towards their marketing efforts. "[Publishers] want the data of their customers so they can integrate it into their circulation database so they know who their customers are," said Fidler. It's all speculation, so don't get excited just yet. Time, Inc. has recently been frustrated with their attempts to implement a mutually-agreeable subscription model in the App Store, and part of their complaint was over retrieving the very data speculated on by Fidler. [Via MacDailyNews]
Murdoch plans digital-only paid newspaper for tablets and phones
We can't honestly say whether The Wall Street Journal's laggy iPad rendition was a success at $17.29 per month, but either way Rupert Murdoch's News Corp is gearing up for another try at this whole digital news thing. The LA Times reports that Murdoch is planning an entirely new national publication for the iPad and other devices -- in other words, not just a print-to-digital conversion this time. "Unlike News Corp.'s business-centric Wall Street Journal, the new digital newspaper would target a more general readership, offering short, snappy stories that could be digested quickly," writes the Times, adding that sources say the digital paper could launch by the end of the year. Here's hoping it debuts alongside that Skiff Reader, eh?
Murdoch confirms WSJ coming to iPad, device kept 'under padlock and key'
It only came at the tail end of an announcement of a new New York metro section for The Wall Street Journal, but Rupert Murdoch has finally confirmed that the paper will indeed be heading to the iPad. The really interesting bit, however, is that not only is the company now being allowed to work on an iPad, but that Murdoch says it's kept "under padlock and key," and that "the key is turned by Apple every night" -- a bit of hyperbole, maybe, but then again, maybe not. In other newspapers-going-digital news, Murdoch also said that the WSJ would be heading to half a dozen or more other devices within a year, although he didn't name any specific devices.
Sony Reader Daily Edition starts shipping, gets more newspapers
Sony hedged its bets a bit in committing to ship date for its Reader Daily Edition when it first announced it, but it looks like it's managed to get the first ones out the door on the early end of its December 18th to January 8th estimate, with the initial batch of pre-orders shipping today. Unfortunately, anyone that didn't pre-order the e-reader is out of luck for the time being, as it's now back-ordered with a new estimated ship date of January 15th. In related news, Sony has also announced that it's signed up an additional 16 publications that will be offering wirelessly-delivered subscriptions on the Daily Edition, including The New York Times, The Dallas Morning News, The Baltimore Sun, and The Denver Post. None of those are exclusive to Sony, however, unlike the News Corp-owned publications that were announced last week.
Major media giants to form joint venture for digital future, says WSJ
News Corp, Time Inc., Condé Nast Publications Inc., Hearst Corp., and Meredith Corp. If this Wall Street Journal report is to be believed here, these five major media firms are preparing to announce a new joint venture tomorrow to "prepare print publications for a new generation of electronic readers and other digital devices." Details are a bit sketchy here, and what makes it more interesting / confounding is that many of these companies already have or have showcased separate initiatives, such as Hearst's Skiff and tablet demos from both Time and Condé Nast. We'll be eager to find out if there are any devices the group rallies behind (or even produces itself), but one thing's for sure: good old Rupert Murdoch will have something fun to say on the matter.
Amazon takes 70 percent of Kindle newspaper revenues
The Kindle DX launch might have sparked a wave of hype about the next generation of newspapers, but not everyone's so quick to agree: Dallas Morning News CEO James Moroney told a Senate subcommittee yesterday that the Kindle isn't a "platform that's going to save newspapers in the near term." According to Moroney, Amazon demands 70 percent of subscription revenue from newspapers, and further requires content owners to grant Amazon the right to republish content to other devices -- like, say, the iPhone. That's a pretty inequitable split, and while we understand that Amazon has to pay for Whispernet somehow, it's hard to imagine newspaper publishers lining up to wager 70 percent of their digital subscription revenues and a perpetual license to their content on devices that are far from proven. On the other hand, it's innovate or die time for these guys, so we'll see what happens -- with all the competitors out there poised to make a move, things are about to get interesting.
