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Reuters: FT resisting Apple’s efforts to channel subs through App Store

April 4th, 2011Posted by in Business, Editors' pick

Reuters reports today that the Financial Times is “resisting Apple’s efforts” to channel subscribers through the App Store.

Last month Apple launched a new subscription service which ruled that publishers will still be allowed to sell app subscriptions through their own websites but will also have to offer subscriptions through Apple from within the app for the same price or less. This will then give Apple an opportunity to take away a 30 per cent cut of the subscription charge.

As part of the new service it is understood that customers purchasing a subscription through the App Store will be given the option of providing the publisher with details such as their name and email address when they subscribe, while publishers can also seek additional information from App Store customers “provided those customers are given a clear choice”, a release said at the time.

But in an interview with Reuters, the FT said it wants to continue to sell subscriptions for its digital news directly, rather than “surrender control of new customers”.

Apple’s hit tablet computer, the iPad, has become a major driver of new subscriptions to FT.com, thanks to its large and crisp display, possibilities for interactive features and affluent customer base.

But the FT values direct relations with its customers which allow it to tailor advertising and products to its audience, and is resisting Apple’s efforts to channel them through the App Store.

News publishers across Europe have raised concerns with the new service, such as the loss of 30 per cent of the subscription revenue, which the International Newsmedia Marketing Association (INMA) said would mean news publishers will not be able to invest in new technology, products and services.

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