Apple's 'dreaded' iPad subscription plan

Steve Jobs' company has finally announced a subscription deal for iPad publications. But media companies may not welcome the news

Apple's new iPad subscription plan applies not only to magazines but also to videos for apps like Netflix and Hulu Plus.
(Image credit: Corbis)

Since Apple introduced the iPad last spring, the publishing world has been awaiting what some call a "dreaded" subscription plan for media apps. Until now, consumers have generally been forced to purchase iPad magazines and newspapers one issue at a time. Today, Steve Jobs "finally" announced a plan for multi-issue digital subscriptions to magazines, newspapers, and other media through the iTunes store. Publishers will have to fork over 30 percent of the revenue to Apple, and are barred from including links in the apps pointing customers to non-Apple sites to purchase content. Is this a fair deal, or just another example of Apple's control freakery?

It's an outrage: "Somebody call the cops — eh, antitrust authorities," says Joe Wilcox at Betanews. Apple is essentially trying to fix prices. Plus, the prohibition on outside links will have a big negative effect on the Amazon Kindle. I read that as "an attempt to extend the tablet monopoly into the adjacent e-book reader market."

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