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Magazine and Newspaper Publishers Get 70/30 Split from Amazon

Amazon Kindle magazine subscriptions

For all of its e-book goodness, the iPad is still lacking in one major area: subscriptions to magazines and newspapers. Amazon’s Kindle has them, and now the company is taking a cue from Apple by giving publishers a better split.

AppleInsider is reporting that will begin offering magazine and newspaper publishers the same 70/30 revenue split that Apple gives to App Store developers. The deal was announced on Monday and goes into effect on December 1.

“Building on the recent introduction of Wi-Fi-enabled Kindles and the upcoming availability of newspapers and magazines on Kindle Apps, we’re pleased to add an increased revenue share and a great new tool for making Kindle better and easier than ever for publishers,” said Peter Larsen, Amazon Director of Kindle Periodicals.

Amazon is offering the new 70/30 split “for publishers who meet certain requirements, such as making titles available on all Kindle devices and applications and offering titles in all geographies for which the publisher has rights.” The publishers will take home 70 percent, while Amazon keeps the other 30 percent.

The news is particularly intriguing for iPad users, who have lamented for months that there was no easy way to get magazine and newspaper subscriptions on their tablet devices. Amazon has already announced that a forthcoming Kindle for iOS update will include magazine and newspaper subscriptions, so this week’s announcement is presumably another piece of the puzzle in place for that update.

The announcement could also have positive implications for Apple — if it’s widely accepted by magazine and newspaper publishers, they could then embrace the same deal with Cupertino and make an iTunes subscription store a reality at long last.

Follow this article’s author, J.R. Bookwalter on Twitter


Apple May Launch Newspaper Subscriptions for iPad

Just when many thought print media was going the way of the dodo, Apple released the iPad and content is exploding from every direction in the universe. From magazines, to newspapers, to television networks, the iPad seems to be the go-to device for delivering content these days. Now, Apple may have a few more tricks up its sleeves when it comes to newspaper subscriptions and the iPad.

According to a new article by the San Jose Mercury News, industry sources believe that “Apple is expected to announce soon a new subscription plan for newspapers, which hope tablets like the iPad will eventually provide a new source of profits as media companies struggle with declining print circulation and advertising revenue.”

Sources told the newspaper that Apple may be prepared to take a 30% cut of subscription profits (similar to the cuts taken in the iOS developer program).

“Publishers wanted to pay Apple a fee rather than a cut of subscription and advertising revenue, and are not happy with Apple’s terms, he said. They had hoped to offer app editions as part of subscription bundles that include print versions of the paper. Instead, they must use Apple as an intermediary with subscribers,” read the article.

According to the article, Apple did not respond to a request for comment.

Newspaper content in subscription form can be purchased through Amazon on the Kindle already, so it will be interesting to see if and how Apple’s newspaper implementation works.

via MacRumors

Follow this article’s author, Cory Bohon on Twitter.