Pressure is mounting on Apple to get an agreement on a subscription method with publishers of newspapers and magazines.
Apple want to implement a subscription model handled through iTunes. Basically, Apple will sign up iPhone and iPad customers for newspaper and magazine subscriptions and give the publishers a 70% cut.
Some publishers don't like this: they say Apple's share is too big and it separates them from useful customer demographic information.
Time Inc is a classic example. At the moment it sells individual editions as one-offs for the iPad at $4.99 each.
Time's Chief Digital Officer, Randall Rothenberg, says:
“We’ve heard it in spades that consumers are pissed off at the idea that to this point they’re not able to subscribe.”It's also known that several European publishing groups are not happy with the iTunes subscription model. And with many other tablets about to be launched, Apple is very aware the iPad could start losing out to others as far as digital magazine and newspaper reading is concerned.
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