According to various reports posted over the weekend, Apple has reportedly contacted several newspapers to inform them that they can no longer offer free iPad access to existing print subscribers. Many publishers, in fact, frustrated with Apple’s lack of recurring subscriptions with access to subscribers’ data, have put in place systems that allow print subscribers who have an iPad to get free access to apps using their previously created accounts. These systems, as you can guess, leave Apple’s standard 30% revenue cut of the equation as app access is offered for free.
AppleInsider reports:
According to a report issued Friday by deVolkskrant (via Google Translate), Apple has employed “stricter rules” for publishers, informing them that they cannot offer free iPad access to paid print subscribers. By offering free access to print subscribers, newspapers could avoid charging for access through the iPad, and can avoid paying Apple a 30 percent cut of all transactions on the App Store.
In addition, nrc.nl reported Friday (via Google Translate) that Apple will no longer allow newspapers to offer free access to print subscribers after April 1. Content providers are upset with the change, characterizing the move as one that makes Apple “too dominant.
At the light of recent rumors surrounding The Daily, an upcoming iPad-only newspaper from Murdoch’s News Corp., it does make sense that Apple doesn’t want publishers to offer external access to newspapers’ contents. The iOS 4.3 update, released as beta last week, is expected to introduce an “app subscription” feature that will allow publishers to set up automatic billing for users through iTunes. The Daily, for instance, will reportedly allow users to get new content pushed to the iPad every day, with a $0.99 per week subscription. Other rumors in the past weeks suggested Google may be planning a “digital newsstand” marketplace for Android as well.