Publishers want more from Apple and the iPad
Publishers say that they require more information about users than Apple usually divulges. Apple’s stance on user privacy may threaten the marriage between the iPad and the publishers of books, magazines and newspapers.
The publishers of the printed word seem to be forming the opinion that strict Internet personal privacy practices, especially as espoused by Apple and their App Store, may not provide the information that they need to make enough money out of electronic publishing, according to a CNET story. Despite announced deals with five major book publishers that would bring books to the iPad, there is little if any information about the new Apple tablet computer pairing up with magazines and newspapers, which has seemed like a natural fit from the beginning of the iPad rumors.
At issue, apparently, is the ownership of subscriber information, as well as the share of the spoils from sales from the App Store and proposed Apple online books store. The subscriber information issues seems to be particularly sticky. Newspaper and magazine publishers have historically used customer demographics in a numbers of ways, especially for marketing and subscription trends. The gist of the magazine and newspaper publisher complaints in this area is that they would be severely handicapped if Apple did not share this information with them, something which Apple has refused to do in the past, such as with app developers and music industry vendors.
The usual Apple revenue-sharing model is also being seen as a problem. Apple generally keeps 30 percent of revenue from sales, forwarding 70 percent to the content provider, such as publishers. Publishers are saying that “the revenue-sharing plan makes less sense for recurring charges such as subscriptions.” One media executive close to the negotiations told the Financial Times that “Is it a deal-breaker? It’s pretty damn close.â€
Publishers seem to continue to ignore the plain fact that they need to change the way that they do business, and if they do not do so they stand to perish. They are losing readership and advertising revenue at a truly alarming rate as the world moves to digital content. If they do not let go of their centuries-old revenue models in favor of something much more modern, they could easily perish and be replaced by more forward-looking content sellers. There is every chance that they are cutting off their noses to spite their faces.
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February 18th, 2010
Being an indie publisher whose primary focus is eBooks and who has watched the entry of the big boys into the field, this latest demand doesn’t surprise. As you have stated, if the newspapers and magazines can’t change their way of thinking, they will disappear. 70% is a damn good share from a distributor. How mcuh do they give to newstands? What kind of information do they glean from those sales? And they are assuming that most of their sales will come from Apple than their site. A very good possibility. If that is the case, why couldn’t they ask Apple to compile statistical data for them without the personal details. There are distributors of eBooks that already do this.
Regardless, this is just another example of how the traditional print are shooting themselves in the foot.