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Financial Times reports that talks between Apple and a number of newspaper and magazine publishers have encountered several hurdles that have slowed the deal-making process as the periodicals publishing industry attempts to understand how the move to digital distribution will affect its business.

One of the major concerns publishers are reportedly having pertains to Apple's policy of sharing only limited customer information with its content partners. As the report notes, publishers have long mined data on their subscribers in order to develop marketing efforts and evolve the focus of their publications over time, but Apple's reluctance to share that information is reportedly making publishers uneasy.
Apple's practice of sharing with its partners little consumer data beyond sales volume is a problem. "Is it a dealbreaker? It's pretty damn close," said one senior media executive of a US metropolitan daily newspaper.

Publishers have spent decades collecting information about subscribers that influence marketing plans and, in some cases, the content of the publication itself. Apple's policy would separate them from their most valuable asset, publishing executives said. "We must keep the relationship with our readers," says Sara Öhrvall, senior vice-president of research at Swedish publisher Bonnier . "That's the only way to make a good magazine."
Another concern for newspaper and magazine publishers is Apple's proposed revenue sharing arrangement, which involves Apple taking a 30% share of revenue for handling distribution. The arrangement is the same as that being used in dealings with book publishers and already in effect for application developers in the company's App Store. Periodical publishers are reportedly unhappy with being asked to give up 30% of revenue on an ongoing basis and argue that their recurring charges for continuing content should be treated differently than single-payment content offerings.

Despite the hurdles, the report notes that the talks are "considered friendly and continuing", suggesting that deals are still likely to be made as publishers remain excited about the platform and new potential revenue streams available through it.

Article Link: Subscriber Information and Revenue Sharing Seen as Hurdles to iPad Newspaper and Magazine Deals
 

Peace

Cancelled
Apr 1, 2005
19,546
4,555
Space The Only Frontier
Wow I hope it doesn't stop the big deals being discussed but man I didn't realize publishers mined that much info from customers.

I say the heck with them. They can get info with the pop up ads in their ePublications.
 

rhett7660

macrumors G5
Jan 9, 2008
12,748
2,721
Sunny, Southern California
I don't know give up 30% in exchange for not having to print. Paper, supplies, factories to print etc.... Makes me wonder why the print business is going down hill at such a rapid pace.

The data... hmmmm maybe they will get even more data by people via clicks etc?
 

CFreymarc

Suspended
Sep 4, 2009
3,969
1,149
Ok, what part of "duh" is missing from this article. Of course this is a change in revenue streams. Trying to make this a win-win for both is going to be a trick.

Most are just doing the "wait and see." When they come up with the right revenue model like they did for record companies and all the lemmings will come on board!

Before that, this is a big indie opportunity.
 

deathmuffin

macrumors newbie
Nov 17, 2008
17
0
Good job apple

I hope apple doesn't cave in on this one.(or apple will be just another google) I already don't like how apple and these news papers already have info on us to begin with. As people we should be in able to sell our marketing rights out to these companies instead of them just taking it from us.... since its so valuable to them to see what we all like and dislike. I feel that apple does a good enough job keeping our customer info secret to themselves, its what makes them so successful in the first place. Knowing what we want and don't want is worth more than gold.
 

veggies

macrumors newbie
Jan 29, 2010
14
0
NJ
if periodicals did an annual pricepoint and gave apple 30% it wouldn't cut too much into their financial planning capabilities. maybe they are planning to sell things on a per-article basis? if that's what they think the solution is then they're screwed. Magazines etc sell the entire collection of articles -- the buyer pays for the fluff pieces and the long-term, expensive investigative journalism. If companies think they can charge per-article, they'll be disappointed in the results.
 

meecect

macrumors newbie
Aug 3, 2009
29
0
It must be hard for Steve to sit in the same room with some of these dumb asses and not hit them with chairs.

Are they stupid? They have an opportunity, through application development, to develop WAY more sensitive tracking information.

These guys have no clue. I hope Apple puts them all out of business.
 

cmaier

Suspended
Jul 25, 2007
24,384
30,996
California
This confuses me. It didn't look to me like the iBooks reader was ideal for periodicals - it didn't seem to support fancy page layout options, etc. So are we talking about each magazine/newspaper as a separate app (with a 70%/30% split?) Can't they sell subscriptions outside of the apple store? Is apple demanding a cut of that revenue?
 

FrankieTDouglas

macrumors 68000
Mar 10, 2005
1,554
2,882
It must be hard for Steve to sit in the same room with some of these dumb asses and not hit them with chairs.

Are they stupid? They have an opportunity, through application development, to develop WAY more sensitive tracking information.

These guys have no clue. I hope Apple puts them all out of business.

You hope Apple puts out of business, a section of media that Apple is actively trying to pull into their fold to make money off of?
 

Peace

Cancelled
Apr 1, 2005
19,546
4,555
Space The Only Frontier
This confuses me. It didn't look to me like the iBooks reader was ideal for periodicals - it didn't seem to support fancy page layout options, etc. So are we talking about each magazine/newspaper as a separate app (with a 70%/30% split?) Can't they sell subscriptions outside of the apple store? Is apple demanding a cut of that revenue?

Yes. Magazines are probably apps. Any interactive heavy thing will be an app.

A concept from SI

http://www.youtube.com/watch?v=ntyXvLnxyXk
 

dgdosen

macrumors 68020
Dec 13, 2003
2,037
700
Seattle
As a software developer, I'm all in favor of that industry bargaining hard with Apple. Competition will drive down profit taking in that space.

After all, apps helps make iPhones more valuable. Apple wants their cake and eat it to.

I'd like to see a world where "store" owners do more to incent developers to work on their platform. I for one hope Google's Market, Windows 7 ??? and the new Cell Provider's stores all take off. I don't want Apple dictating terms to everyone.
 

the-oz-man

macrumors 6502
Jun 24, 2009
402
153
Print media has been on life support for nearly a decade and the freaking "gold mine" comes to them in the last ditch effort to save their industry and they are just not happy with it . . . Come on and get a clue! You guy are light years behind what the internet is doing to your industry. Take what you can get and learn to live lean until you can implant yourself in another revenue stream.
 

David29

macrumors member
Jun 8, 2009
68
0
CA
Learn from the music business

Years ago, the record companies balked at changing their distribution model and revenue streams as well. They waited forever while "alternate" sources of their material grew in numbers to the point where the music business was about to be devastated. But finally (and after waiting FAR TOO LONG) they capitulated and woke up to these new methods of doing business.

Although the music business will never be the same as it once was, at least the business has been saved to a great degree.

Now we see another industry of "content providers" who face a radical shift in their business models as well. Advert sales are down, subscriptions are down, revenues are down, etc. for newspapers, magazines, and other various periodicals. Former buyers and readers are finding alternate methods of finding "content".

Does this not sound familiar?

These publications need to wake up. No longer can they depend upon marketing driven "data mining" of their subscriber base for a revenue stream.

You want to know who I am, what I read and where I have been? Well ... let me just delete my cookies .... POOF! All gone! haha !!!

They need to embrace subscriber models based upon digital content delivery. However - they have tried and failed when it comes to subscription based web sites. That has turned out to be a big joke.

You want me to actually register before I can read your article? No thanks. Click (Back button). Wait .... do I understand you correctly .. you now want me to PAY for your content? LOL Surely you are joking! Next!

Since generating paper ain't workin well for 'em, they need an alternative. Since the web-based subscription model aint working either, they need some other alternative.

Enter the iPad.

It's really their only hope.

Their only REAL bet moving forward is that somehow the "organic" approach taken by the iPad will somehow provide a happy medium for content providers and consumers. People LIKE to sit and read (and hold) a book or newspaper, but the printed versions are not working any more. People love the computer-based benefits of quickly accessing content and browsing around, but the web-based subscription models don't work either.

If the touchy-feely aspect of the iPad works, this will prove to be a happy medium that both providers and consumers can embrace.

The content providers need to wake up, lest their industry go the way of the PDA, AOL, and VCRs.

Wake up, or bye-bye.
 

Winni

macrumors 68040
Oct 15, 2008
3,207
1,195
Germany.
It must be hard for Steve to sit in the same room with some of these dumb asses and not hit them with chairs.

Are they stupid? They have an opportunity, through application development, to develop WAY more sensitive tracking information.

These guys have no clue. I hope Apple puts them all out of business.

And Apple when then, magically, awesome, amazing, become a newspaper and magazine publisher over night? Get real.

Newspapers and magazines are traditionally NOT in the software development business, and they do NOT want to change that. They want an electronic platform that does not require them to change the way they work and do business. If Apple cannot provide them this platform, Apple will be out of business and somebody else will do the job. Amazon, maybe?

I wonder who will become the Slate provider for Playboy, Penthouse, Hustler & Co. Since Apple, prude Americans that they are, have no problem with violent computer games but die of a heart attack when they see a naked breast, won't work with them, somebody else will have to do it. And whoever it is, he/she/it will quickly become the most important Slate eMagazine platform.
 

meecect

macrumors newbie
Aug 3, 2009
29
0
You hope Apple puts out of business, a section of media that Apple is actively trying to pull into their fold to make money off of?

Yes, put out of business dinosaur publishers who resist new technology at every turn, are slow to adapt to new demographic trends, and rely on ancient production methods when the tech is staring them in the face.

They will need to adapt, streamline, and embrace or be put out of business by new players. The new players will bring something innovative to the table, use the technology, embrace the new audience and thrive.

It won;t be over night, but the writing is on the wall.
 

meecect

macrumors newbie
Aug 3, 2009
29
0
You hope Apple puts out of business, a section of media that Apple is actively trying to pull into their fold to make money off of?

Yes, put out of business dinosaur publishers who resist new technology at every turn, are slow to adapt to new demographic trends, and rely on ancient production methods when the tech is staring them in the face.

They will need to adapt, streamline, and embrace or be put out of business by new players. The new players will bring something innovative to the table, use the technology, embrace the new audience and thrive.

It won't be over night, but the writing is on the wall.

Yes, Apple needs them at launch and they will fill out the content offerings, but others will come. My point is that is probably frustrating for Steve to sit around while these dinosaurs debate these things when he is the only one willing to throw them a line. Their laziness and refusal to see the future (or do anything about it) should earn them bankruptcy.

So yeah, in a few years time, when Apple makes it easier for indie houses to get their content in the store, I won't shed a tear for the falling stock price of Time Warner et al.
 

AwakenedLands

macrumors member
Nov 4, 2009
79
1
California
I don't know what the big thing is about this. The news agencies all have websites. Why would I buy a newspaper subscription for a specific device?
 

Cromulent

macrumors 603
Oct 2, 2006
6,064
42
The Land of Hope and Glory
Frankly I'm glad Apple does not share customer information. It speaks more in Apples favour. I don't want my information being shared with third parties who I do not explicitly allow access to my data (by entering it into their website directly).

Bravo Apple.
 

sfh

macrumors regular
May 27, 2008
240
0
Sacramento CA
and they wonder why print is dying

apple is creating a viable marketplace for them to make lot's of money where they have never been able to make anything at, and they say "no we want the users information so we can target advertise" "so maybe we won't do this new finagled internet thing."


and they wonder why their business is dying... they would rather slowly die a certain death than to grab the life-ring floating in the water right next to them.
 

Michael CM1

macrumors 603
Feb 4, 2008
5,680
275
Print media has been on life support for nearly a decade and the freaking "gold mine" comes to them in the last ditch effort to save their industry and they are just not happy with it . . . Come on and get a clue! You guy are light years behind what the internet is doing to your industry. Take what you can get and learn to live lean until you can implant yourself in another revenue stream.

Gold mine? Do you know how much extra cost it will take to develop content for the iPad? To add the nifty stuff like the NY Times demo showed, that's not going to come cheap. Every level of newspaper is cutting pennies here and there to just stay alive. All of this is a crapshoot since not a single iPad has been sold.

I'm heavily biased as a newspaper employee, and I can tell you that this is far from a sure thing. You're expecting people to spend $500 on an extra device to read your content, which right now costs them either 75 cents/day per single copy or FREE on a Web site.

This won't make money for the industry until the gravy train of free news is killed. The New York Times is going to be first down that road. After that, the other big boys must follow. I honestly don't expect people to spend that much extra money for the same thing.

Our publication's readership is skewed extremely old, so this stuff isn't going to help us in the long run unless we can attract new people. Are software developers going to emerge to work with the thousands of smaller papers across the country?
 

cmaier

Suspended
Jul 25, 2007
24,384
30,996
California
Frankly I'm glad Apple does not share customer information. It speaks more in Apples favour. I don't want my information being shared with third parties who I do not explicitly allow access to my data (by entering it into their website directly).

Bravo Apple.

And yet the average consumer who buys an iPhone app thinks the developer has their information. I get emails a few times a month from people who think I have some idea who they are.
 

RidleyGriff

macrumors regular
Jan 11, 2006
211
7
I wonder who will become the Slate provider for Playboy, Penthouse, Hustler & Co. Since Apple, prude Americans that they are, have no problem with violent computer games but die of a heart attack when they see a naked breast, won't work with them, somebody else will have to do it. And whoever it is, he/she/it will quickly become the most important Slate eMagazine platform.

Penthouse filed for Chapter 11 not too long ago.

Since the Net, nudie mags and porn DVDs aren't nearly the market they once were - and aren't a tenth of a fraction of the technological driving force they were in the VHS/Beta days.

Why look at an ebook Hustler when you can stream video of the same thing?
 
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