Just when Rupert Murdoch thought that the Apple iPad would be the savior for his newspaper empire, up pops the devil in the shape of an Apple. The newspaper people thought they would just pay an upfront fee and keep all the rewards of subscriptions and advertising monies. No, no, says Apple. We have a better idea. No upfront fees, but we want a cut of the action.
In a recent article at the International Business Times it states:
Roger Fidley, head of digital publishing at Donald W. Reynolds Journalism Institute in Columbia, Mo., told the San Jose Mercury News that Apple would likely take a 30 percent of subscription revenue sold through its Apps Store and 40 percent of the ad revenue.
Fidler said that newspapers are not charmed by the offer as they expected to pay an upfront fee rather than the revenue-sharing model.
Newspaper publishing industry is in a quandary regarding its subscription-based revenue model. It ceded control of the model when it made its content available for free online. Since then the industry has been struggling to wean customers of the free online news feed.
So just when Rupert Murdoch was jumping up and down singing the praises of the Apple iPad, his taste buds may have bitten into one apple that is bitter. The newspapers are still going to find it hard to make ends meet when everyone on the Internet will wait a piece of the pie. Apple pie that is. 🙂
But all may not be lost for the newspaper industry. It could always turn to Google for help. Now that Android seems to have become the new choice for smart phones, Google may be looking at a better alternative to the iPad or iPhone. It is nice to have choices for all of us, including the newspaper industry.
What do you think?