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Time/Apple deal confirmed, pushes down magazine's prices

updated 10:00 am EDT, Mon May 2, 2011

Cheaper rates require private info, auto-renewal

A reported deal between Apple and Time Inc. has been confirmed, notes Fortune. People downloading the Time iPad app can now get digital issues at no extra cost in tandem with a US print subscription. Non-subscribers must still pay a cost of $5 for each new issue.

In exchange for free digital issues, however, people must also hand over their name, address and credit card number, and agree to a print-standard automatic renewal of their subscription. Apple's resistance to permitting the combined "automatic renewal feature" is believed to have been one of the main reasons why publishers have avoided implementing in-app subscriptions. Previously subscribers had to explicitly agree to share private details with a publisher unless they paid through the publisher directly.

Magazine and newspaper creators have also had a problem with Apple's parity policies. While a company can claim all of the revenue from a subscription if it's paid for outside of the app, Apple demands an equivalent in-app subscription option from which it claims 30 percent of revenue. Despite this, in-app prices are not allowed to be any higher than outside ones. The FTC has been investigating whether or not Apple may be violating antitrust laws.



By Electronista Staff
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Comments

  1. daqman

    Junior Member

    Joined: Sep 2000

    +1

    Fail

    They just DON'T seem to get it! WTF do I want a paper subscription for if I'm getting the digital version? The whole point behind getting it digitally is I don't want the physical paper cluttering up my life. It's the same (only worse) with the NYT pay through the nose for the digital version or get it for free but kill some trees as well as paying. I tried out the NYT subscription and cancelled when I realised that I still got the same stupid advertising even though I was paying for the content. Having to sit through an ad for some luxury car I can't afford being driven by some rich stuck up brat is an insult.

    Ok, end of rant.

  1. testudo

    Forum Regular

    Joined: Aug 2001

    -1

    Re: Fail

    They just DON'T seem to get it! WTF do I want a paper subscription for if I'm getting the digital version? The whole point behind getting it digitally is I don't want the physical paper cluttering up my life.

    Then just get the blasted digital version. No one says you have to get the paper version. They're just offering it for free to those who already subscribe. Geesh.

    I tried out the NYT subscription and cancelled when I realised that I still got the same stupid advertising even though I was paying for the content. Having to sit through an ad for some luxury car I can't afford being driven by some rich stuck up brat is an insult.

    What???? You pay for a subscription and they still give you ads? Next thing you know they'll be putting advertising in physical newspapers, magazines, etc. What's the deal with these people, anyway. Don't they know we paid for it, so it should be ad free?????

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