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I think this is the best route for most newspapers to go. Why limit yourself to just Apple devices when you can make a web app that runs on iPad, Android, Playbook and Web OS? Less work for the developer and more money for the publisher.
 
This was the company that was mad at Apple because Apple wouldn't let them steal their customer's private info secretly. I'm not saying the 30% isn't also a reason, but I'm wondering if it's not their main reason for doing this.

I'd be VERY nervous about signing up for any account with Financial Times. I suspect the whole 30% thing is just a cover for their real intentions.

The main source of revenue for newspaper is advertising. The reason why newspapers want customer information is because it's easier to sell advertising if you know the demographics of your readership.

It's not some evil, secret plan, it's just how the publishing industry works.
 
ok. good to know it is not just me then. anyone else with this problem

dubnde, I think I may have figured it out. Deleted the web app. Logged out online. Went to Safari settings and deleted all cache and cookies. Went back to app.ft.com in Safari and went through the suggested login/install process again. After starting over, the web app now works offline. Pictures and everything else download.
 
FT Reading List

I think using the FT website will be efficient when using the new Safari feature Reading List. Just put the articles you want to read in train/bus/plane in the reading list and off you go. Should work.
 
The problem with having a web-based app is that people associate the web with free content. Apps are usually different, where people expect in-app purchases, subscriptions, etc.

You're obviously correct, that's why people are willing to pay for "the Daily".
Last time I checked their subscription numbers were falling like a rock...

Six months ago, there were reports about app magazines sales dropping. Has that changed?
 
You're missing the big picture. FT doesn't care about 70% out of pennies! It's about the advertizing! Publications are only about advertizing. They'd rather keep 100% revenue off the ads!
 
Exactly.

App is faster (if done right), can take offline. And there are more potential customers through the app store / itunes.

Would you want 100% fee of 1000 customers or 70% fee of 10000 customers?

The FT has information about how many are subscribing, and they are basing their decision on that information. While neither of us have that information, one thing is certain, they aren't going to lose 90% of their app customers...

And the "app customer" isn't 70% pure profit for FT, those customers, like all others need to pay for lots of other things too.
 
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tompw said:
Well, I don't know... sure, they have to give 30% to Apple but at the end of the day they receive 70% and even though it's not as profitable, it surely is widespread with so many millions of iOS devices browsing the iTunes App Store, even if it's just so that it may appear on this place they will at very least get the attention they would otherwise not get.

If you sell e-books, you have to give 70% (or more) of the sales price to the author... if Apple keeps the other 30%, you wind up with zero. See http://www.macstories.net/news/apples-in-app-purchase-policy-forces-iflowreader-to-shut-down/ for example.

Bad business models are bad
 
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Bad business models are bad

Like agreeing to pay the AppleTax.
 
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Rodimus Prime said:
Exactly.

App is faster (if done right), can take offline. And there are more potential customers through the app store / itunes.

Would you want 100% fee of 1000 customers or 70% fee of 10000 customers?

sounds great in theory unless your cost per customer is in the 80-90% range already in terms of revenue brought in because then an increase in customers just means a larger increases in losses.

People like you argue that but forget that that the 30% gross revenue demand from Apple is often times greater than the the profit margin is any how.

That is not the case for ANY content creators. Only middlemen who compete directly with the same content creators they resell. Selling content is a cumulative business if you create it so you can't sell it at a loss. If you are a reseller that is different but that is the burden of choosing that business model.
 
Come on Apple. If you ask for 10% you'll keep your content providers and get a cut. I'm sure if you just quit pretending 30% is some sort of magic number, you'd make more money and have happier devs and customers.

So Apple does all the work of customer service, IT, HW servers, monthly data transfer, point of sale, and offer a hugh market of affluent consumers and they get only 10%? The magazine industry gives more than that to brick and mortar outlets and they have to make a print copy, where as iTunes' distribution is published quick and cheaper digitally.

Maybe you should rethink your logic! It's flawed
 
As a current FT subscriber, I say DON'T DO IT. The native iOS app is MILES ahead of this makeshift HTML5 effort, which obviously can't even keep offline content available for reading.

I really hope they stop this BS bickering and keep the app, which has received many design awards since the debut of the iPad...no web-based initiative can replace it.

Although the FT has the rare privilege of NOT needing to run after subscribers, given its high-end audience and quality articles, they'd better not risk losing any because of such an arrogant approach.

I liked the FT app a lot and was really upset too, until I checked out the web-based one tonight. It does have offline access capability, and works great. Class act. Popped it onto my home screen with bookmark, gave it room to store stuff, ditched the app. Happy camper here.
 
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Rodimus Prime said:
its like shopping in a mall vs the outlet stores. the mall has cache (sp?) and it advertises your business to the most foot traffic and you pay for it with high rent. the appstore is the BEST application of advertisement and incidental exposure to browsing customers in the mobile arena. how much does that cost you? 30% rent. its like people have a manager and give him a cut to make them big until their own name has clout and they want to break the contract.
the Appstore does its job well as a well integrated distribution service. i wish them well tho. Maybe this will work for them like soundclick and cd baby works for people who left itunes............ *sideeye*

see that argument might work if Apple allowed basicly side loading on iOS devices. Then they could put rules in place on if you want to be in Apples App store then you play by Apples rules but since Apple App store is the only way on iOS the rules are different and Apple is putting it in a position of being hit for Anti-trust. Also remember EU is much harder and stricture on antitrust issues than the US so while in the US it may be legal over in Europe it is a different story and Apple runs a much bigger risk.

Best result would be for Apple to allow side loading and 3rd party App stores.

A mall is not required to lease space to any tenant that does not agree to it's terms. A retail store is not obligated to sell any product if they don't want to do it. The idea that there is some kind of anti trust or actionable issue here is absurd.
 
Good. Hopefully Apple realize what a dickish move they are trying to make.

I totally disagree. 30% seems like a pretty good deal considering the amount of support you get through Apple. I'm sure a magazine kiosk in an airport gets more than 30% and that requires the company to print a magazine.

If it were such a bad deal, I don't think other companies would do it. FT is missing the boat and missing out on a lot of potential customers.
 
Let the customer decide

Apple should simply allow the user to decide if they want to use the in-app purchase process (and pay a premium) or get the books, mag copies, etc in whatever way the vendor designs it. Apple simply should also demand fairness -- that the customers price will be no more than the lowest in-app purchase price on any other device.

Apple's requirement that the in-app process be present and functioning properly should be all that Apple requires.

The current language simply will not fly and loss of companies like Amazon/Kindle, Barnes and Noble/Nook will essentially kill the iPad, and with it Apple. If Apple does not become reasonable in their contract terms, you will see Apple stock drop like a rock and bankruptcy soon to follow.
 
What 30% buys you:

  • Unlimited Hosting (5%),
  • Subscription billing system (expensive to provide customer support),
  • Payment Gateway (they take between 5-10% of every payment transaction)
  • Technical Support
  • Advertisement of Your App in High Yield CPM

For companies that don't already have an online billing system iTunes
provides extremely lost cost system.

Cost of developing our billing platform ($10,000)
Cost to our payment gateway on every transaction under $1 (10% 20¢ fee)
Cost to our payment gate on every transaction OVER $1 (5% 10¢ fee)
Monthly Hosting Costs $1500.00 (monthly)
Staff to answer support emails and fix trouble tickets ($3000.00 /month)

iTunes is a great deal!

Can't agree more. FT made a bad move.
 
The main source of revenue for newspaper is advertising. The reason why newspapers want customer information is because it's easier to sell advertising if you know the demographics of your readership.

It's not some evil, secret plan, it's just how the publishing industry works.

Heres a better question if I am already paying a subscription fee should I really have to give up my private information and see advertising on top of my subscription?

I could understand if the newspaper were free.
 
It’s good that iOS has multiple development platforms, and multiple business models. I hope it works out well for FT and for the App Store publishers alike.
 
One thing I've always disliked about IOS Apps is having to use an App for content that is normally available from a webpage. Sometimes the App is a better fit for smaller screens or whatnot but I just don't like the concept of needing an App to access Web based content.

Besides according to Apple's own anti-flash dogma HTML5 is the future of Web content....
 
Heres a better question if I am already paying a subscription fee should I really have to give up my private information and see advertising on top of my subscription?

I could understand if the newspaper were free.

It's the old model... a print subscription was mailed or delivered to you, so they knew your demographics, and it came with ads. Some companies still won't sell you an online sub unless you take the print one. And then the digital one often has ads anyway. They want that ad revenue!! It's annoying, not just because of the ads but who needs the tree-killing clutter of the print one if the digital version is your preference.
 
Exactly.

App is faster (if done right), can take offline. And there are more potential customers through the app store / itunes.

Would you want 100% fee of 1000 customers or 70% fee of 10000 customers?

Exactly its their loss. Either way I don't think these very specific newspapers with limited readership care as much. I do know about the newspaper but have never really cared about getting it. WSJ is more of my taste but again limited client el.

NY Times is a complete different animal and who does not read it?

Apple has made it so easy to get the electronic version that I wonder if I would even waste my time moving over to web experience or hard cover after using their apps. I am talking about Popular Science, Popular Mechanics which are great apps even if they could use a little more capacity still well done. On the other hand Consumer Report is useless not sure why they even have an app since its just not there. I could see them going HTML5 not like they have put effort behind it.

I can see how some would say that Apple need to lower the price and I am for that 30% is a bit high, but its not like we are seen any real competition so its hard for me to reason why Apple would lower their price at this time.
 
(Disclaimer: I don't own an iPad, just an iPod Touch, smartphone is Android, boo me off the stage, etc.)

Apple's policies are onerous, plain and simple.

The magazine on a newstand being more than 30% comparison doesn't really work. Magazine subscriptions (most magazines, anyway) are typically under $2 an issue if you go for a year. Newstand copies are sold at $5-$8. Let's suppose the newstand makes 50% on a $5 copy (you get $2.50) and Apple makes 30% on your $1.80 digital edition (you get $1.20). The 50% retail margin is overboard, considering the Magazine Publishers of America say it's 33.6% average adjusted gross margin for shopkeepers. Given that it's a bunch of magazine companies trying to convince stores to sell more magazines, I think that figure may be a tad high ;) Even so, we'll round to 50% on some other charges (getting the magazines printed + to stores).

On the digital front, you have development costs for a native application, bandwidth charges/digital content production charges (customers of digital versions expect more interactivity). You do get some money back on ads.

Apple has a couple other terms that are really not equitable in the view of the magazine industry.
  1. The limitations on the use of data are really untenable from the view of a magazine publisher. In an ideal world, we'd live in a world where magazine subscriptions were cheap, the content was great, there were no ads, and companies didn't sell our data.

    Unfortunately, people want cheap magazines with great content. Advertisers want to know they're advertising to their target market. This means you need to know the demographics of who is buying your magazine - else you'll end up with low budget scattershot advertising. Even without the advertising money, the plain and simple fact is that the fact that you read such and such magazine is worth money!

    I'm not too bothered that some companies know I read Wired & PC Mag. I opted out with the Direct Mail Association a while back and get almost no junk. From any other standpoints I don't see where that information is valuable...
  2. The lowest price through in app purchase/forced use of in app purchase is really crappy. For most people, an Apple ID is made through iTunes, which asks for iTunes immediately (at least, when I made mine through iTunes, I was forced to add a credit card to proceed - I wasn't even making a purchase at that time). Most people will have credit cards associated. In app purchases or lowest price would be fine, but the combination of the two means magazine publishers must charge everyone unfairly (e.g. bloat all minimum subscription charges to account for Apple's margins), or they have to stop using an app on iOS.

I suspect Apple may back down on this, just like how Apple resisted $1.29 song pricing (on popular songs) for a while before eventually caving. The magazine/paper/book industry does not want to submit to Apple; people will get their content in ways outside of Apple's app store. It's essentially a game of chicken at this point.

I'll have to toy with my user agent and try the HTML5 app out...

So Apple does all the work of customer service, IT, HW servers, monthly data transfer, point of sale, and offer a hugh market of affluent consumers and they get only 10%? The magazine industry gives more than that to brick and mortar outlets and they have to make a print copy, where as iTunes' distribution is published quick and cheaper digitally.

Maybe you should rethink your logic! It's flawed

Your logic seems flawed from the perspective that subscriptions are typically $2 or less an issue, while in-store copies are at least $5 (that's for weekly magazines like TIME from what I've seen; most of the monthly magazines I'm interested in are at least $8/issue at the newsstands now).
 
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I totally disagree. 30% seems like a pretty good deal considering the amount of support you get through Apple. I'm sure a magazine kiosk in an airport gets more than 30% and that requires the company to print a magazine.

If it were such a bad deal, I don't think other companies would do it. FT is missing the boat and missing out on a lot of potential customers.

That's a big misunderstanding. Apple support does not replace any work that FT has to do anyways. FT can not abandon all non-Apple customers (a huge majority), so they still have to maintain all their existing infrastructure (payments etc.). Besides those who claim that Apple serve the content are totally wrong. The content for the application comes from FT servers.

As far as airport kiosks go, there is a huge difference. Air travelers have no choice (there is only one news kiosk in the airport) that's why the fee goes up. iPad owner has many ways to get FT (HTML 5 being one example). Apple simply miscalculated.
 
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