Apple is reportedly on the verge of unveiling a brand new newspaper subscription model optimized for the iPad. Since a swelling number of avid newspaper readers now digest their daily news content electronically - and mostly for free - on their mobile devices, Apple apparently sees an opportunity to implement yet another money-making scheme to capitalize on this growing trend.
If reports prove accurate, Apple will basically introduce a "revenue sharing model" remarkably analogous to that which has already been used for apps sold in the Apple App Store. According to the San Jose Mercury News, Apple may implement an "opt-in function" that lets subscribers "share their personal information" with publications. This data, of course, is vital to the remaining print publications, as they depend on that highly relevant information to do business with a variety of advertisers.
While a handful of national papers already offer app subscriptions to iPad users, major metropolitan papers across the country are getting ready to roll out their own publication apps and have been in discussions with Apple. Industry leaders hope tablet devices and subscription-based digital editions can help newspapers stem, if not reverse, losses incurred after they began offering up content online for free years ago.
Apple, as the publishers wanted to "pay Apple a fee" rather than a cut of subscription and advertising revenue. Apple's terms to do the deal, however, call for a revenue sharing model. And since Apple has what all the publications need, it looks like Apple may very well get what it wants.
Then again, what else is new?
San Jose Mercury News