Rumor Alert! Apple Reaches Newspaper Subscription Deal

Apple is gearing up to offer newspaper subscriptions for the iPad via its App Store, according to a San Jose Mercury News report.

The company is reportedly in talks with both local and major metropolitan newspapers to open up new revenue streams via subscriptions, as more consumers opt for alternatives to print publications.

Although some publications, including The New York Times and The Wall Street Journa l already have a presence on the iPad via a subscription model, most newspaper publishers currently do not.

An industry expert told the San Jose Mercury News that Apple may take a 30% cut of all subscriptions sold through iTunes and up to 40% of advertising revenue from the digital newspaper content.

The report also indicated that Apple has agreed to provide an opt-in function for subscribers to share their information with other publishers. This data serves as a key way to attract advertisers.

Publishers, however, prefer to pay Apple a fee rather than a slice of the revenue brought in from subscriptions and advertising. Publications wanted to offer app editions as part of subscription bundles that include print versions of the paper, the report said.

The proposed method would mean newspapers have to use Apple as an intermediary with subscribers.

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