The iPad was hailed as the savior of publishing when it was introduced earlier this year, but if some reports are to be believed, it’s not going so well. Time Inc, was set to release a version of their subscription version of its Sports Illustrated iPad app. This model would have consumers paying Time directly for new issues within the app. Apple rejected to app at the last minute. The mood at Time since than is reportedly frantic.
The magazine has resorted to selling single issues, with the standard iTunes app store model. It’s not just the revenue that magazines gain from subscriptions, it’s the information they get about their direct customers. It’s possible Apple blocked this direct sales app because they are worried about the use of this customer data. Alternatively, Apple may just want all the cash flowing through the App Store.
No other magazines have submitted a direct subscription app as of yet, and presumably this situation will keep them on the fence. We may see magazines taking a dimmer view of the iPad in the future. Time even briefly considered pulling out altogether.
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