Apple seeks to profit from newspaper app subscriptions and adverts

Apple is reported to be working on a new subscription plan for newspapers on the iPad. According to Roger Fidler, head of digital publishing at a Missouri journalism institute, Apple will probably take a 30% cut of all subscriptions sold through its online app store and as much as 40% of the advertising revenue from publications' apps. While a handful of US papers already offer app subscriptions to iPad users, major metropolitan papers across America are getting ready to roll out their own publication apps and have been in discussions with Apple. Industry leaders cling to the hope that tablet devices and subscription-based digital editions can help newspapers stem, if not reverse, losses incurred after they began offering content online for free years ago. Publishers want to pay Apple a fee rather than a cut of subscription and advertising revenue and are not happy with Apple's terms, said Fidler. They had hoped to offer app editions as part of subscription bundles that include print versions of the paper. Instead, they must use Apple as an intermediary with subscribers. Fidler said: "Obviously, Steve Jobs sees this as a significant revenue stream for Apple in the future." Apple is expected to dominate the consumer tablet market for at least a couple of years. However, analysts expect high-quality tablets based on Google's Android operating system to challenge Apple. This will give publications more leverage in future negotiations, Fidler added, though Google does not yet offer subscriptions through the Android market.