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Subscriber Information and Revenue Sharing Seen as Hurdles to iPad Newspaper and Magazine Deals
One of the major concerns publishers are reportedly having pertains to Apple's policy of sharing only limited customer information with its content partners. As the report notes, publishers have long mined data on their subscribers in order to develop marketing efforts and evolve the focus of their publications over time, but Apple's reluctance to share that information is reportedly making publishers uneasy.
Apple's practice of sharing with its partners little consumer data beyond sales volume is a problem. "Is it a dealbreaker? It's pretty damn close," said one senior media executive of a US metropolitan daily newspaper.
Publishers have spent decades collecting information about subscribers that influence marketing plans and, in some cases, the content of the publication itself. Apple's policy would separate them from their most valuable asset, publishing executives said. "We must keep the relationship with our readers," says Sara hrvall, senior vice-president of research at Swedish publisher Bonnier . "That's the only way to make a good magazine."
Despite the hurdles, the report notes that the talks are "considered friendly and continuing", suggesting that deals are still likely to be made as publishers remain excited about the platform and new potential revenue streams available through it.