updated 09:20 am EDT, Mon April 4, 2011
FT still loathe to go through iTunes subscriptions
The Financial Times on Monday further established a possible impasse on iTunes subscriptions through a new interview. Managing director Rob Grimshaw said that direct subscriptions were "the core of our business model" and still didn't want to follow Apple's new rule requiring an iTunes royalty cut with reduced subscriber data. He insisted to Reuters that the FT's parent company Pearson had a "great relationship" with Apple, but he was prepared to drop the iPad to go to Android or another platform if negotiations didn't pan out.
"If it turns out that one or another channel doesn't mix with the way we want to do business, there's a large number of other channels available to us," he said.
Unlike some outlets, the financial paper believed it had more to lose from going Apple's route. Without as much of a presence on the web, it reportedly needs the more targeted advertising to help make money.
Apple has insisted that it needs a 30 percent royalty cut mirroring that from its media and book stores, but it has faced challenges unique to subscriptions. Unlike the iTunes and iBooks deals, the subscription rules only came in after many developers already had businesses in place. Moreover, many publishers also don't necessarily have enough revenues to afford the royalties where it was already budgeted in for music, movies, and books.