Newspaper and magazine publishers already having an iPad crisis moment

Demographics are everything to magazine (and blog) publishers.  It's how you sell ads. Under the iTunes model, content producers receive sales numbers, and the money that goes with them.  No credit card numbers, no addresses, no hint whatsoever of who's buying what.  This does not sit well with publishers.  Also, while the 70 percent split makes book publishers giddy that they're controlling their own destiny since they can set prices (good luck with that, guys) newspaper dudes are understandably less thrilled about giving away a third of the subscription, since it's an ongoing payment.  "Thirty per cent forever changes the economics," one exec told the Financial Times.  Apple won't move on this point at all, apparently.  Magazines are basically like apps to Apple.

http://gizmodo.com/5472886/newspaper-and-magazine-publishers-already-having-an-ipad-crisis-moment

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As expected, the tricky question of "How we gonna get paid?" has reportedly become a sticking point in Apple's negotiations with newspaper and magazine publishers. Put simply, subscriber information is deeply valuable, and Apple doesn't want to to share it.

 
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