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Publishers Avoid Apples Commission with Newly Launched Service

27 May 2011

Digital technology company Yudu launched a service earlier this month to help magazine publishers evade the 30 per cent commission that Apple charges to deliver content to iPhones and iPads through its App Store.

Apple Inc. in February introduced a platform for iPad users to purchase subscriptions for newspapers and magazines at iPad's App Store. But publishers have balked at the plan, which would give a 30 per cent cut of the revenue to Apple and allow the Cupertino, California-based company to control personal information of the subscribers.

Yudu, whose online publishing tools help companies tailor their content for tablet computers, smartphones and e-readers such as the Amazon Kindle, said Apple had recognized its new service as compliant with its terms and conditions.

The new dual-subscriptions system from Yudu, whose customers include Reader's Digest and Haymarket, allows users to download publications onto their Apple device through the App Store, even when the purchase is made directly from the publisher.

Publishers have initially been apprehensive to Apple's digital subscription platform, as it would allow Apple to keep information that customers submit when subscribing to magazines in the App Store. Customer information is a valuable data that publishers use to woo advertisers. The publishers, however, also see an opportunity with the iPad since it would allow them to boost exposure and circulation.

Apple also sells e-books for the iPhone and iPad through its own iBookstore.

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