Publishers are accepting 50% fee to join Apple News

A few months ago, we commented here how the publishers were not very excited about the coming Apple's on-demand periodic platform apparently, the publications were uncertain about the likely price charged by Ma and the visibility that their newspapers and magazines would have within the service.

From December to c, however, much has changed: Apple's “Netflix of magazines / newspapers” took shape very quickly and, it seems, will be launched very soon with an announcement scheduled for March 25th. With that, the attitude of the publishers also changed.

In a recently published report, the Recode He talked about Apple's negotiations with publishers and Apple's strategy to capture the maximum content for their service while charging fees that sound quite scary. Apparently, as we have already commented, Ma is demanding from most publications a division of 50-50 in revenues from the platform far more than the 70-30 commonly charged on the App Store. But unlike the report of the Wall street journal, O Recode said the company is succeeding.

As much as the rates seem gigantic, the vehicle said Apple has already signed up with "many publishers" for the service. It is true that some of them were startled by the charge initially, but were convinced by a very simple argument from Ma: it is better to have your product exposed to a large number of users for a lower value than to have a smaller number of readers generating more. money.

It is important to note that revenue sharing refers only to the amount paid by users for subscriptions: Apple does not touch the money generated by advertising inside the newspapers and magazines on the platform.

Apple would be promising publishers to invest heavily in publicizing the new service and that it could potentially attract many millions of subscribers. This, of course, is a pressure on Cupertino: if 'Netflix of magazines / newspapers' is not a burst already in the launch, there is a real possibility that the platform will be quickly stampede and fly.

It is also important for Apple to devise an alternative strategy to convince newspapers to get on the platform: these publications, according to the report, are not being convinced by Apple's arguments and prefer to stick to their own subscription schemes. Because they are a very important part of any on-demand periodicals service, it's wise to have Tim Cook and his class act fast about it.

via MacRumors