Report: Apple to deliver newspaper subscriptions via iTunes

With publishers continuing to seek alternatives to eroding print circulation and declining ad revenues, Apple (NASDAQ:AAPL) is reportedly poised to unveil a new application-based digital newspaper subscription service delivering premium news media to connected devices like the iPad. The San Jose Mercury News reports Apple is in talks with major metropolitan newspapers across the U.S. to "re-create the traditional print model in digital editions for tablets and e-readers," according to Roger Fidler, head of digital publishing at the Donald W. Reynolds Journalism Institute in Columbia, Mo. Apple has agreed to incorporate an opt-in feature enabling users to share personal information with publishers--media outlets "want the data of their customers so they can integrate it into their circulation database so they know who their customers are," Fidler explained.

Apple reportedly plans to claim a 30 percent share of revenues from newspaper subscriptions sold via the computing giant's iTunes digital storefront--in addition, it will take a 40 percent cut of advertising revenues generated via each paper's iPad application. The report notes that publishers are unhappy with Apple's terms, instead preferring to pay the company a fee rather than a cut of subscription and advertising revenues--their plans originally called for app editions to be offered as subscription bundles alongside their traditional print efforts. Apple declined comment.

Media kingpin News Corp. is planning to introduce a new national digital newspaper distributed exclusively via mobile handsets and tablets. The Los Angeles Times reported last month the initiative will compete directly with national publications like USA Today and The New York Times, with content targeting a more general readership via short, snack-sized articles intended to be read on the go. The unnamed publication would operate under the supervision of the News Corp.-owned New York Post--although the digital newspaper will draw on the reporting efforts of multiple News Corp. media properties, a source says plans call for a dedicated staff including several dozen reporters and editors, although a budget has not been determined. News Corp. has not set a launch date, but sources indicate the paper will roll out by the end of 2010.

For more on the Apple newspaper service:
- read this San Jose Mercury News article

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