Apple Leaves Out Online Publishers, Seeks More Market Revenue Control
Apple has contacted European publications to inform that they will cease offering free access to iPad editions due to financial matters. Rumors say the company wants more profits from subscriptions. “By offering free access to print subscribers, newspapers could avoid charging for access through the iPad, and can avoid paying Apple a 30% cut of all transactions on the App Store,” says AppleInsider’s Katie Marsal.
Apple’s decision will have a considerable impact on publication,s as they might as well search for collaboration with other platforms that would allow them not only to set their pricing strategies. It would also offer them information on the buyers of apps, a thing that Apple refuses to disclose, but Google intends to offer. Such is the example of Google that is planning to open its own newsstand on Android smartphones and tablets and charge publishers cheaper than the 30 percent charged by Apple.
Another reason for which publishers might want to switch platforms is the decline in digital issues sold via iTunes at the end of 2010.
With the overwhelming popularity of social media, numerous publishers embraced digital media solutions, and in order to keep existing customer or retrieve lost customers, they have implemented online versions of their publications.
It appears that Amazon is considering a solution similar to Apple’s, as app developers working with their recently announced platform can only suggest a retail price that Amazon will take into consideration when deciding on the final price of the app. The only positive side about this issue is the fact that Amazon has agreed to give back either 70 percent of revenue generated, either 20 percent of the suggested retail price. Thus, in case Amazon sells app at reduced prices, the content maker is offered the same money. Amazon is known for its pricing strategy, and holds it as a major trump card when it comes to competing with Apple in digital sales.
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