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The iPad business model for news: Strategies publishers must embrace

(Story via)

Nieman Journalism Lab

The iPad business model for news: Strategies publishers must embrace

February 18, 2010, 10:00 am

There’s been a lot of hand-wringing in the journosphere about what newspapers ought to be doing vis-a-vis the iPad. If publishers adopt their usual defensive stance and take a slow approach, they’ll miss the iPad boat. Or the iPad rocketship, as the case may be.

Kenneth Li of the Financial Times reports that “Newspaper and magazine publishers are stumbling over key issues such as sharing subscription revenues as they consider deals to offer digital versions of their products on Apple’s upcoming iPad digital media device.” Apple’s 30 percent take of any subscription revenue is a far better deal than the 70 percent many publishers forked over to Amazon to be on the Kindle, but some publishers are balking at Apple’s deal. “Thirty percent forever changes the economics,” one newspaper exec complaned to Li. “You can imagine we feel less good about it.”



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Cost to build iPad, could publishers subsidize?

There’s been some talk, and it might not be such a bad idea, that newspapers should/could subsidize the cost of e-reading devices or tablets. Except for the New York Times which offers a netbook at a discount with a desktop reader app subscription, I know of no one who is planning this.

But today, via eBookNewser, we get a glimpse at the cost of manufacturing an iPad. And even though it’s doubtful Apple would enter into such agreements with individual newspapers or groups, it’s an important part of the equation……

See the full article here:

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