Rumors are circulating that Apple is on is way to developing a digital newsstand that lets publishers sell subscriptions to magazines and newspapers. This would be separate from the individual issues marketed through the App Store, through which publishers have been selling since the iPad's launch. (via Bloomberg).
Apple and such publishers as Time Warner Inc., Conde Nast, Hearst Corp. and News Corp. are reportedly negotiating terms over who controls the data about the users and how to split the revenue - two important issues that has been the source of disagreement from the beginning. The talks may break down - although Google's overtures to the publishers with its forthcoming Android tablet may prompt Apple to give some ground. Even if an agreement is reached, the newsstand may not make a formal debut until the next iteration of the iPad.
Meanwhile, publishers want to make money with the iPad, as the rates of engagement from single issues that have sold have been higher than expected. There is also the sense that the iPad is still unique enough that subscribers are willing to pay a premium for its content. As other tablets come to market that may fade. Standing in the way has been Apple's policies - the revenue share of 30% is a bitter pill for many publishers. Worse has been Apple's insistence that it serve as middleman with the customers.
Moving Forward
Still, publishers are forging ahead, in some cases making an end run around Apple and its policies. News Corp., owner of the Wall Street Journal, is setting up a subscription news product specifically for tablets such as the iPad, Bloomberg reports.
Sporting News has taken a similar approach, rolling out a Sporting News Today App for iPad [demo] - one for which consumers will be able to purchase a subscription (via Media Week). The app was built using Zinio's Unity technology, which is one of handful of companies - another example is Texterity - that reproduce magazines digitally and distribute through PDF files. The interactivity and design options are limited as a result, but Sporting News says the app was built to take advantage of the touch screen.
