Why Apple Backed Down in Fight With Publishers

[Commentary] While Apple had gotten a few big publishers to agree to its subscription terms, it’s had pushback from companies over its terms, including the 30 percent it skims off App Store purchases and its refusal to share customer data, and it's likely this move is related to that.

Other devices are coming to market, presenting new competition for Apple, and loosening the stranglehold that the company has had over content producers to this point. Plus, publishers are exploring browser-based apps that would skirt the App Store altogether. This week, The Financial Times made waves when it did just that after having rejected Apple’s subscription terms. Outsell’s Ken Doctor believes other publishers, like The New York Times and Wall Street Journal, marquee brands that are important to Apple, see the FT as a potential model to imitate at some point. “Plainly, it’s a change of course for [Apple],” he says. “Apple knew there was dissatisfaction.” As for the practical effect, publishers can be expected to explore different subscription prices for digital editions. Condé Nast, for one, is already selling digital subscriptions on its own sites as well as in the App Store. Look for publishers to test higher prices in the App Store to offset Apple’s 30 percent cut.