![]() ![]() ![]() That makes Apple's 30 percent cut almost immaterial to publishers, because their iTunes subscription distribution and fulfillment costs are being largely borne by Apple anyway. In most cases, the newsstand or subscription costs of periodicals has largely only ever served to help pay for distribution, with publishers making most of their revenues from advertising. ![]() While music, movies and apps have a history of being sold directly, newspapers and magazines have long relied upon ads more than subscription or newsstand revenues. Apple has never supported an ad-based music subscription model, or free TV or movies supported by ads, and has only recently began monetizing free apps with iAd. Shifting from ads to content Apple is essentially turning the publishing industry from an ad-centric medium it has long been into a content market identical to the ones it has already set up within iTunes for music, TV, movies and apps. ![]()
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