According to a report Apple is getting ready to provide a subscription-based plan for newspapers. Apple is looking to take a 30% cut on subscriptions sold through the App Store.
Apple is expected to announce soon a new subscription plan for newspapers, which hope tablets like the iPad will eventually provide a new source of profits as media companies struggle with declining print circulation and advertising revenue.
Apple did not respond to a request for comment. But Roger Fidler, head of digital publishing at the Donald W. Reynolds Journalism Institute in Columbia, Mo., said Apple probably will take a 30 percent cut of all subscriptions sold through the company’s online App Store, and as much as 40 percent of the advertising revenue from publications’ apps.
Currently, Apple doesn’t allow subscription based services in iOS apps an issue that brings frustration on multiple media. If Apple allows subscriptions, it will give a huge boost to newspapers and magazines.
Source: Mercury News
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