Apple launches subscription service for magazines, newspapers and music

Apple has launched a new subscription service for magazines, newspapers and music bought through its App Store, expanding the model developed for Rupert Murdoch's iPad newspaper the Daily.

The new charging system, which is used for apps on the iPhone, iPod Touch, and iPad, will allow publishers to set the price and length of recurring payment plans. Apple will keep 30% of the revenue from subscriptions in most instances.

Until now, publishers have been restricted to selling each issue of their magazine or newspaper individually. News Corporation's recently launched venture the Daily is the first publication to use the new system, charging 99 cents (61p) a week for the iPad-only US title.

Steve Jobs, Apple's chief executive, who is presently taking a medical leave of absence from the company, said in a statement: "Our philosophy is simple – when Apple brings a new subscriber to the app, Apple earns a 30% share; when the publisher brings an existing or new subscriber to the app, the publisher keeps 100% and Apple earns nothing.

"All we require is that, if a publisher is making a subscription offer outside of the app, the same – or better – offer be made inside the app, so that customers can easily subscribe with one click right in the app.

"We believe that this innovative subscription service will provide publishers with a brand new opportunity to expand digital access to their content on to the iPad, iPod touch and iPhone, delighting both new and existing subscribers."

Apple will process all subscriber payments and take a 30% cut. But publishers can also sell digital subscriptions to their apps through their website. Customers will choose how much personal information – in addition to their name, email address, postcode and billing details – to hand over to the publisher.

The technology giant's control over its App Store payments plan has long been a cause for concern for content companies. Publishers want to have access to subscriber data which can provide lucrative demographics on which to base advertising campaigns and targeted reader offers.

The move is something of a compromise by Apple, which has remained reluctant to relax its App Store guidelines.

However, Apple will still prevent publishers from including in-app links to other purchases made outside the app. Apple has previously rejected Sony's Reader app for giving customers access to some content outside of its app.

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