Apple to start newspaper subscription plan on iPad

Andre Yoskowitz
16 Sep 2010 18:53

Multiple outlets are reporting this week that Apple is set to announce a newspaper subscription plan for the iPad tablet, one where revenue will be shared by the publishers and Apple.
As part of the deal, Apple will implement an opt-in feature that will let users share their personal info with publications. The publishers need that info to share demographics with advertisers.

Both parties have been in negotiations for such a plan since before the iPad launched in April. Publishers would not agree to the plan without the opt-in feature, calling demographic data "the most valuable asset."
Although the exact figures are unclear, it is believed the deal will give Apple a 30 percent cut of all subscriptions sold, similar to the share they take for music.

Additionally, Apple might take as much as 40 percent of advertising revenue.

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