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Newspapers unhappy about Apple's stance on iTunes sales

by Sarah Griffiths on 9 February 2011, 15:40

Tags: Apple (NASDAQ:AAPL)

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Control freak?

The newspaper industry has warned Apple not to try and be too controlling about the sales of newspaper and magazines available through iTunes.

The European Newspaper Publishers' Association (ENPA) has told the BBC it is worried by Apple's plans to make sure that all direct online sales go through its iTunes store.

By controlling subscriptions for papers and magazines sold through its store, the ENPA reckons a large cut of the profits will go to Apple. However, Apple has reportedly claimed it is simply giving consumers choice, despite rumours that a clampdown on selling products and services in apps will happen soon too.

Apparently a handful of newspapers have claimed that Apple has stopped them from offering freebie editions to their print customers and publishers are now worried that increasing control over sales by Apple will stop people subscribing to publications via the newspaper or magazines' own websites.

The ENPA reportedly said: "consumers may only have access to the newspaper of their choice via the iTunes store, where the transaction would be subject to commission."

Apple presently collects a healthy 30 percent share of the revenue from apps and e-books sold via its iTunes platform.

Apparently publishers are also concerned that if they are only allowed to sell their digital publications through iTunes they will lose out on lucrative subscribers' information, which the industry relies on to sell advertising.

Apple has apparently not hit back at the ENPA's criticisms but has reportedly previously denied that it intends to stop users purchasing subscriptions through the publishers' own websites.

It has however, apparently rolled out a rule that newspaper apps have to include an option to buy via iTunes and critics have claimed this ‘easy option' will probably prove the more attractive method because of its simplicity, bagging Apple extra cash.



HEXUS Forums :: 8 Comments

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I dont know whats more funny.

The press crying or the fact that they met there match in all controlling mega corporations with to much power.
Apple are their own worst enemy. They're gonna be boned without Job's reality distortion field.
Apple presently collects a healthy 30 percent share of the revenue from apps and e-books sold via its iTunes platform.
And therein lies one of the reasons why I won't use iTunes.

But as for the newspapers bleating, well, don't provide material via iTunes then. The only way Apple can exploit a pseudo-monopoly power is if content providers provide content. Maybe they content providers need a union. ;)
Saracen
But as for the newspapers bleating, well, don't provide material via iTunes then. The only way Apple can exploit a pseudo-monopoly power is if content providers provide content. Maybe they content providers need a union. ;)
Not knowing what conditions Apple apply currently, a question occurs to me. Why can't the newspaper groups just ship a (free?) “portal” app that then allows you to subscribe to their various publications - in the same manner an RSS reader works (generally speaking).

Ok, Apple would get a percentage of the app sales money - but if that's a small amount then the newspaper groups aren't going to lose much. And if the high value purchases are being carried out inside the app then surely Apple can't touch those. Presumably all those advertiser friendly details would have to be supplied to the app by the poor subscriber and, as I said in the previous point, the newspapers would have total control over the subscription money coming in.

Oh, and competition rules permitting, what's to stop smaller newspapers (like the local papers in this country) clubbing together to share the costs of the “newspaper” app?

I've got no sympathy for Lies, sorry “News”, International - but remember that there's more effected by the Church of Apple than just these big corporations. Not that I'm likely to be a customer because there's nothing in the Apple portfolio that appeals to me.

Of course, the other approach is to ditch iOS and go WebOS/Meego/Android - the news media have only got themselves to blame for continually bigging up Apple. ;)
Apple would reject the app, like they did with Sony's book reader app.