Apple has decided to relax its relatively restricted subscription rules. This will come as good news for major newspaper and magazine publishers, many of whom have signed up in droves to write tons of applications for the iPad in hopes of reaching an even larger (and more tech savvy) audience.
According to MacRumors, Apple will no longer compel publishers to offer users subscriptions via its App store at the same price or less than offered elsewhere. Currently, Apple earns around 30 percent of subscription frees that are purchased via the App store. Apple is ready to remove these restrictions in the next issue of subscription guidelines.
This serves to highlight an interesting fact, Apple’s iPad is the most popular tablet PC on the market right now but emerging competition, especially from Android devices is forcing it to take a more conciliatory tone with publishers. Earlier Apple could simply dictate almost anything it liked, but now the odds are slowly becoming more even and publishers are becoming bolder when it comes to things like negotiations over subscriptions.
Do not expect Apple to give away too much ground though because the popularity of the iPad will live on for the near future and publishers are eager to reach new customers right now; they simply cannot afford to wait any longer.
Users will now experience a greater surge of publishers, especially those connected to News Corp. Other publications have also expanded to iPads and iPhones including The Economist, Time Magazine, CNN, BBC and Foreign Policy. This is because demand for traditional print media has been steadily declining over the years and selling material online through special subscriptions is the only way these prestigious firms can continue to survive. However, as experience as shown, simply settling for a weaker business model online is not an appropriate strategy. Therefore, Apple’s decision will help publishers adapt more positively to emerging trends.