Mashable! - Apple vs. Publishers: Why Apple Already Won

Apple this week announced a plan to levy a 30% fee on publishers who charge subscriptions through its App Store on the iPhone, iPad and iPod touch. The fee applies to newspapers, magazines and digital books (not to mention music and videos). What’s more, Apple’s rules dictate that publications can’t offer these same subscriptions at a lower price outside the App Store. And in another blow to publishers, customers will have the option not to share their details — name, email address and zip code — with the publisher.

Some publishing industry analysts are aghast at the proposal, claiming the rate is much too steep and the terms too strict. I don’t disagree: There’s no doubt that Apple is using its dominant position in digital distribution to strong-arm publishers. But the fact that the tech giant can propose such onerous terms without blinking points to the fact that the battle is already lost: The balance of power has permanently, irreversibly shifted from the media companies to the tech firms.

That’s the topic of my CNN column this week.


Read the full column on CNN.com >>

More About: app store, apple, iOS, ipad, News, newspapers, publishing

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