A number of newspaper and magazine publishers are expressing concerns over potential deals with Apple due to fears that the company will not be as forthcoming with customer data as the publications would like. The Financial Times reports that Apple’s history of sharing little customer data beyond sales volume information could prove to be a “deal breaker,” said one senior media executive in discussions with Apple. “We have for many years relied on subscriptions to be able to communicate with our readers,” Sara Öhrvall, senior vice-president of research at Swedish publisher Bonnier, told FT.
“It is absolutely crucial to keep the data. That’s something that our advertisers need. It is something that we need.” Also a concern is the ability to identify current print subscribers to offer them discounts or free access to digital versions.
Customers “will be really upset if we try to charge [them] again,” Ms Öhrvall said. Regardless of the device, she added that “it’s a deal killer.”
Publishers are also said to be wary of Apple’s revenue model, which would see the publisher paid 70 percent of the selling price, with Apple keeping the rest. While the plan makes sense for books, publishers said, it makes less sense for recurring charges like subscriptions, adding that giving away close to a third of subscription sales over an indefinite period of time would be hard to accept.
