The Surprising Reason Publishers Are Finally Saying Yes to Apple
Earlier this week, I asked what had changed in the standoff between Apple and magazine publishers, who want to sell subscriptions to iPad editions in the iTunes store but, until last week, weren't prepared to accept Apple's rules.
Context & Ripple Effects
Publishers’ iPad plans had been constrained from the outset by unresolved deal terms, and the gap with Apple was still pronounced in late 2010’s subscription negotiations. The new iTunes subscription service changes that calculation: syndicated coverage indicates that roughly half of iPad subscribers choose “Allow,” giving publishers a meaningful opt-in path to customer information under Apple’s rules.
First-order effects
- Magazine publishers can begin selling iPad-edition subscriptions through the iTunes Store while accepting Apple’s subscription terms.
- Apple adds publisher-backed subscription inventory to iTunes, and publishers gain contact details from subscribers who opt in to sharing them.
Second-order effects
- Publishers’ ability to market and retain digital subscribers becomes tied to Apple’s consent flow, making opt-in rates a practical measure of how much customer ownership they retain.
- Apple’s store becomes a more credible distribution channel for paid magazine editions, increasing the cost to publishers of remaining outside its subscription system.
Third-order effects
- If publishers accept platform-controlled payments and customer consent in exchange for reach, digital publishing shifts toward a model in which the storefront operator sets the terms of audience access and data sharing.
The trend: Magazine publishers are trading direct control of subscription relationships for access to the iPad audience, with opt-in data sharing defining the compromise.