2011-02-15

Apple?s Digital Newsstand Just Disrupted The Publishing Industry

How much pricing power exactly does Apple have over publishers desperate to figure out a digital strategy that results in paying subscribers? A hell of a lot?at least that is what Apple is betting with its new subscription billing service. Apple is taking a 30 percent cut of all digital subscription revenues. Just take a moment to think about that for a second. Up until now, Apple took a 30 percent cut of one-time purchase of all apps in iTunes. So the 30 percent number doesn't seem strange, at least not to consumers. What do we care how the money is split up as long as we all of these digital goodies are affordable? But publishers and other media companies with subscription businesses (cough, Netflix, cough) care very much. Apple is saying if we deliver a paying customer, we will take 30 percent of their subscription dollars in perpetuity as long as they consume your media on our devices.

Source: http://feedproxy.google.com/~r/Techcrunch/~3/bJL0Ycn0Sak/

SES SHAW COMMUNICATIONS MCAFEE MAXIMUS MANTECH INTERNATIONAL MANHATTAN ASSOCIATES

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