Apple and the Press, Not so Compatible

Eighteen months after the launch of the iPad, in spring 2010, the initial intuition of newspaper editors is confirmed: for reading newspapers and magazines online, the digital tablet from Apple itself as a “game change ” – the magic item that has just upset the rules of the game, like the iPod did for music ten years ago. Their fears are also true: Apple settles between newspapers and their readers.
Already sold 40 million copies, more than a million in France (nearly 90% of sales of tablets), the iPad is primarily a tool for media consumption: full nomadism, possibility of permanent connection, instinctive and playful manipulation, suitable size for reading, high visual quality, operating system allows an infinite number of innovations …

Furthermore, by implementing its experience in music sales, Apple has oversimplified the act of purchase: Since its online store iTunes already has the number of credit card owners iPad, some pressure the finger enough to buy a newspaper or a subscription. The outlet has moved closer to the maximum of the customer to get up on his bedside table.

Anticipating a likely decline in the price of tablets, hundreds of newspapers and magazines from all countries ( The World ), have invested in the creation of multimedia versions specially adapted to the iPad. And newspapers designed exclusively for the iPad have quickly emerged. End of 2010, the Virgin Group Launches Project Magazine , monthly “design, science, fashion and business” , sold at number 3 euros or 16 euros for the year. For Virgin, the challenge is to integrate sound and video, while retaining layout and look similar to those of a high quality magazine paper: we must avoid that the product looks too much like a website ” classic “because in this case, readers, accustomed to free the Internet, may balk at paying .

In early 2011, the Murdoch group starts to turn market “newspaper iPad” with The Daily , a daily with a major general heading “people” richly illustrated. The subscription costs $ 1 per week or $ 40 per year. In November, the Daily had 120,000 readers per week, with 80,000 paid subscribers. According to figures published by Murdoch at the launch, it would take 500,000 to be profitable.

In their wake, many newspapers (including The World ) are in the process of inventing hybrid objects, based on the editorial content of their supplements of the weekend: selection of papers given out and rich, full videos screen, 3D games and entertainment, interactive advertising … Initially, these new magazines weekend are free.

Of course, all the benefits of the iPad will pay, dear. Maximum use of its dominant position, Apple requires newspaper publishers harsh conditions.

The App Store (Apple‘s online store) reserves the right to refuse an application without explanation and without appeal. If the application is approved, Apple requires that publishers use only the integrated payment system (In-App Purchase), and charges a 30% commission on all financial transactions.

It also requires all grid uniform price and very rigid in Europe, a daily newspaper can be sold 79 cents, or 1.59 euro, no price being allowed through. Some (such as Le Monde) resign themselves to perform the low price of 79 cents, others (including Les Echos) sell iPad to 1.59 euro, or more expensive than the print edition … To justify this policy, Apple says that a regular system like the App Store, accessible 24 hours 24 worldwide and manages more than 600,000 applications, is only viable if its operations are standardized.

For subscriptions, Apple initially wanted to prevent publishers pass on to customers the amount of the commission – that the offer remains competitive with iPad websites of newspapers. The company also wanted to ban readers to purchase a subscription to all media from the iPad and the tablet chargersur bought a copy of the newspaper’s website. She eventually abandon these requirements are incompatible with the economic model of the major download sites and music books, such as Amazon and Spotify. However, it still forbids newspapers to provide a link from their page iPad to the subscription page of their website.

In addition, Apple sees himself as sole owner of the personal data submitted to the App Store by buyers of newspapers and magazines. For publishers, this attitude is unacceptable because, historically, the direct relationship with customers, monitor their behavior, regular raises, are essential tools of their trade policy. Recently, Apple agreed to share the data – if the client agrees – but wants to limit by contract the right of editors to use .

Faced with these constraints, media groups have reacted differently. Some accept without qualms all the requirements for Apple, because they still consider themselves winners, given the exceptional quality of the iPad, its market dominance and the effectiveness of the App Store.

Others refuse to block. The most radical is the British newspaper Financial Times (FT), who managed to put in place a system to stay on iPad while shorting Apple. For Mary-Beth Christie , director of products online Financial Times is first a matter of principle: “When I buy something online with my Dell computer, Dell does not charge commission. It there is no reason for Apple to do it. ”

At the launch of the iPad, the FT had created its application, like everyone else. But soon, the team of Mary-Beth Christie noted that other manufacturers are preparing to launch the shelves of quality: “Therefore, the idea of having to put in place a specific version for each new device we seen as a waste of time and money. ” The Financial Times decided to create a “universal digital version” , readable on all platforms because it will build on the traditional Internet browsers – including Safari, the browser Apple‘s preinstalled on the iPad.

For this, the developers decide to build a website and an application using HTML 5, a new computer language of the Web, still experimental, but very promising. After months of work, they get their way: In June 2011, the FT provides a universal service multitablette. Now the user of an iPad can connect to the site via Safari and Financialtimes.com download link and an icon identical to the App Store. From his second visit, he will not see the difference with an application validated by Apple of pressure on the icon, it has direct access to a tailored version of the newspaper to the tablet, and can s’ subscribe very easily.

However, behind the scenes, everything changed: the FT does not pay commission, obtains data directly to its customers and is free to set its rates. Until July, the two systems coexist, and Apple notes that the British newspaper violates the exclusivity provision of financial transactions. It removes the iPad application from the App Store, but nothing can be done to stop the new “application HTML5“.

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This entry was posted on Thursday, December 15th, 2011 at 7:52 pm and is filed under Technology. Tags: apple You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.