Magazine publishers were some of the first big believers in the potential of Apple’s iPad, with Conde Nast saying they expected as much as 40% of their revenues would come from tablet devices in the future.
But the romance has quickly soured, as publishers push back against Apple’s increasingly domineering stance to subscriptions and advertising.
Pete Kafka over at All Things D has a nice breakdown of the growing gap betweenpublishers and Apple over subscription sales on the iPad. Kafka says that Apple has been offering the following for months.
* The ability to sell app subscriptions through iTunes.
* 70 percent of the revenue from each sale.
* The ability to offer an opt-in form for subscribers that would ask them for a limited amount of information: Name, mailing address, email address.
Hence the recent move by publishers to cozy up to Google and its Android operating system, which will be running on a slew of new tablets in 2011.
The issue, as Kafka points out, is that publishers don’t want to be cut out of customer information and subscription sales that could be equally as valuable when applied to print. iPad-only projects like News Corp’s The Daily won’t have such hang ups.