Next up for iPad: subscription plan for newspapers

Mercury News is reporting today that Apple will soon launch a subscription plan for newspapers which will also provide advertising revenue stream for publishers.

The Cupertino company has agreed to provide an opt-in function for subscribers to allow Apple to share with publishers their information, which includes vital data that news organizations use to attract advertisers, industry sources say.  Publishers “want the data of their customers so they can integrate it into their circulation database so they know who their customers are,” said [industry analyst]Fidler, who works with many newspapers…”Obviously, Steve Jobs sees this as a significant revenue stream for Apple in the future.”

The report states that Apple wants to take 30% of subscription revenue sold through the online store and up to 40% of advertising revenue from the venture.  Not all publishers are lining up for this proposition.

Publishers wanted to pay Apple a fee rather than a cut of subscription and advertising revenue, and are not happy with Apple’s terms, he said. They had hoped to offer app editions as part of subscription bundles that include print versions of the paper. Instead, they must use Apple as an intermediary with subscribers.

Apple continues to make major moves into publishing, with Conde Naste saying that devices like the iPad may soon account for 40% of their revenues.

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