Apple's Subscription Model

For publishers it's a double-edged sword. On the one hand it will lead to increased readership, but on the other hand publishers will cede control over the subscription process and accompanying reader data to Apple. In its upcoming subscription model, Apple may or may not decide to share user data to publishers (it hasn't so far, on individual issue sales). Also publishers will have little control over what revenue cut Apple will take, although it's likely to be the same 30% it takes on the App Store.

Frédéric Filloux argues in Monday Note that Apple's subscription service will be of much more benefit to small publishers, who will accept a relatively high revenue cut by Apple in exchange for outsourcing the technicalities of subscription.

For big publishers however, there remains a lot of fear over the control Apple will have over them. In a recent New York Times article, publishers like Hearst appeared to be pinning their hopes on alternative tablets - Android, Kindle and others. That seems like a vain hope though, as Apple has built up a considerable early lead in the tablet market for magazines.

Source: The New New Media