The European Newspaper Publishers' Association (ENPA) has called out Apple for what it perceives as restrictive conditions that come with Apple's new in-app subscription system. The organization argues that Apple's changes could eviscerate user choice and that publishers' business models could be turned upside down, though the situation could end up being less dire than ENPA imagines once Apple's in-app subscriptions roll out to users.
Apple supplied a new in-app subscription system in its iOS 4.3 beta to coincide with the launch of The Daily iPad newspaper. Subscriptions will allow users to be automatically billed for the regular delivery of content to an iOS device—this differs from the previous system that forced users to consciously make a decision to purchase every time a new issue shows up.
This doesn't bother the ENPA, but it does object that Apple is tightening its control over newspaper publishers so that Apple can skim off the profits.
"In [the] future, consumers may only have access to the newspaper of their choice via the iTunes store, where the transaction would be subject to commission," the ENPA wrote. "Publishers today want to provide readers with a range of attractive options, including offers combining access to newspapers online and on tablets, or offers for print subscribers that also allow access to the newspaper on digital formats."
Here, the ENPA is somewhat-indirectly referencing a newly enforced restriction on the App Store that may limit the abilities for publishers to offer free iPad subscriptions to some readers (for example, print edition subscribers) but not others. Apple has allegedly been telling some developers that they can't force users to log in to get access to content that they paid for elsewhere—a similar angle that Apple has been taking with e-book publishers. The goal is to make sure that transactions pass through Apple's system, where it takes a substantial cut of the money.
"Moreover, newspaper publishers would no longer have access to important information about the readers of their digital publications," added the ENPA. "The business model of newspapers is dependent on publishers and editors knowing their readers. It is essential that this close connection is maintained. Without direct access to their subscribers, this vital bond between newspapers and readers would be broken, to the detriment of both."
This is the part that may not end up being true, at least if Apple's disclaimer shown to App Store customers is to be believed. The disclaimer says that Apple may request permission to provide personal information about you to the app developers for marketing purposes, but it's possible that Apple still won't offer as much information as publishers are used to when they sell traditional subscriptions directly to readers.
The publications represented by ENPA aren't happy with Apple, but they stopped short of demanding that Apple change its policies. Instead, ENPA is making more of a plea, arguing that "new online and mobile business models often operate in combination with the print edition."
An Apple spokesperson declined to comment on ENPA's statement, so we'll likely have to wait and see what happens when iOS 4.3 becomes available and developers start trying to roll out apps with the new subscription system.
Apple supplied a new in-app subscription system in its iOS 4.3 beta to coincide with the launch of The Daily iPad newspaper. Subscriptions will allow users to be automatically billed for the regular delivery of content to an iOS device—this differs from the previous system that forced users to consciously make a decision to purchase every time a new issue shows up.
This doesn't bother the ENPA, but it does object that Apple is tightening its control over newspaper publishers so that Apple can skim off the profits.
"In [the] future, consumers may only have access to the newspaper of their choice via the iTunes store, where the transaction would be subject to commission," the ENPA wrote. "Publishers today want to provide readers with a range of attractive options, including offers combining access to newspapers online and on tablets, or offers for print subscribers that also allow access to the newspaper on digital formats."
Here, the ENPA is somewhat-indirectly referencing a newly enforced restriction on the App Store that may limit the abilities for publishers to offer free iPad subscriptions to some readers (for example, print edition subscribers) but not others. Apple has allegedly been telling some developers that they can't force users to log in to get access to content that they paid for elsewhere—a similar angle that Apple has been taking with e-book publishers. The goal is to make sure that transactions pass through Apple's system, where it takes a substantial cut of the money.
"Moreover, newspaper publishers would no longer have access to important information about the readers of their digital publications," added the ENPA. "The business model of newspapers is dependent on publishers and editors knowing their readers. It is essential that this close connection is maintained. Without direct access to their subscribers, this vital bond between newspapers and readers would be broken, to the detriment of both."
This is the part that may not end up being true, at least if Apple's disclaimer shown to App Store customers is to be believed. The disclaimer says that Apple may request permission to provide personal information about you to the app developers for marketing purposes, but it's possible that Apple still won't offer as much information as publishers are used to when they sell traditional subscriptions directly to readers.
The publications represented by ENPA aren't happy with Apple, but they stopped short of demanding that Apple change its policies. Instead, ENPA is making more of a plea, arguing that "new online and mobile business models often operate in combination with the print edition."
An Apple spokesperson declined to comment on ENPA's statement, so we'll likely have to wait and see what happens when iOS 4.3 becomes available and developers start trying to roll out apps with the new subscription system.
