Subscriptions Now Offered for iPad Publications

Apple has now agreed to allow publishers to sell subscriptions through its App Store; this has been an issue that has been a source of contention with magazine companies since the iPad was released last spring.

It is unclear yet if Apple's new model will satisfy publishers because they have been pushing for full access to the buyer's information. Apple only uses some data with the use of consent.

How is this going to work?

Well, Apple explains that 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. Publishers may seek additional information if the 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 revenue from the subscriptions sold through the App Store will be shared by both Apple and the publishers; Apple will recieve 30 percent and publishers will keep 70 percent. On the other hand Apple will not restrict the publishers to selling through Apple itself. When they sell apps outside Apple's store, they will get to keep 100 percent of the revenue.

"Our philosophy is simple - when Apple brings a new subscriber to the app, Apple earns a 30 percent share; when the publisher brings an exisiting or new subscriber to the app, the publisher keeps 100 percent and Apple earns nothing," Steve Jobs, Apple's chief executive, said.

Photo Credit: CreativeCommons, SeattleClouds.