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Time Inc. Signs Magazine Deal With Apple

redletterdave writes "Time Inc., the largest magazine publisher in the U.S., has decided to embrace digital distribution. On Thursday, Time Inc. announced that it will make all of its magazines available over the Newsstand application built by Apple. The agreement was confirmed by Time Inc. CEO Laura Lang and Apple's senior VP of Internet software development Eddy Cue. The two company executives agreed to allow Apple Newsstand users to subscribe to more than 20 magazines owned by Time Inc., including Sports Illustrated, People, and Entertainment Weekly."

25 of 83 comments (clear)

  1. What do you get when you combine Apple and Time? by Anonymous Coward · · Score: 5, Funny

    Rotten fruit.

  2. Time embraced digital distribution long ago by tomhath · · Score: 5, Insightful

    Time already offers digital subscriptions. All this does is add the ability to subscribe through Newsstand. A nice win for Apple, but it sounds like Time got the concessions they wanted in order to make the deal.

    1. Re:Time embraced digital distribution long ago by cpu6502 · · Score: 3, Informative

      Beat me to it.
      The summary "embraced digital distribution" makes it sound like Time, Inc has never provided e-magazines before. But most of them are available through Amazon. Or online websites. The REAL news here is that Jobs was charging 30% and Time said "no" to that. The new Apple arranged for lower rates.

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  3. Apple's extortive prices by jbwolfe · · Score: 3, Informative
    have been the issue all along. And Time have done the right thing by holding out for better terms. Thirty percent (though not sure if that's on a continuing basis, regardless) is absurd. Relevant quote:

    "They want you to be subscribing to them, and the last time we looked they weren't making the magazines," Bewkes said of Apple.

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    1. Re:Apple's extortive prices by busyqth · · Score: 2

      have been the issue all along. And Time have done the right thing by holding out for better terms. Thirty percent (though not sure if that's on a continuing basis, regardless) is absurd.

      Nothing has changed there. Time will be paying 30%, at least according to Apple:

      Neither Apple nor Time Inc. would discuss the exact financial terms of the agreement, but Mr. Cue said Time Inc.’s heft did not influence them. “We offer the same terms to everyone no matter how big or how small,” he said.

    2. Re:Apple's extortive prices by Kergan · · Score: 4, Insightful

      Dude!... Write a fucking backend.

      Make it process orders in one step for 400M users -- it needs to scale accordingly, btw.

      Make it deal with refunds, chargebacks, reverse-chargebacks, complaints, fraud, yada yada, pretty much anything that can go wrong when you do business.

      Make it manage subscriptions, including cancellations. And rentals. And DRM.

      Make it deal with taxes in 150+ countries, including local variations where applicable.

      Make it do your monthly accounting, including subcontractor payments.

      Make it provide all sorts of metrics to your subcontractors, too.

      Oh, and QA test anything your subcontractors send you, too. Check for malware, crashes, etc., anything that might make those millions of end-users unsatisfied.

      Do all that, and more, and you'll appreciate how 30% is a bargain.

      Alternatively, just shut up. Because you've absolutely no fucking clue how hard it is to create and operate a backend.

    3. Re:Apple's extortive prices by jbwolfe · · Score: 2
      I take it you work for apple. (been there since 2007, maybe- too young, too naÃve.

      Alternatively, just shut up. Because you've absolutely no fucking clue how hard it is to create and operate a backend.

      Yes, of course. All your content are belong to us.... Regardless of whether you respect Time Inc.'s collection, I'm sure you'll disagree with me that you yourself have "no fucking clue how hard it is to create and operate" a respectable journalistic enterprise. Thanks for your rational discussion- were you ever to persuade me of the validity of your argument, you lost me suggesting I've "absolutely no fucking clue". Fuck you very much, sir/madam for making Slashdot a place to "discuss" anything- off to Twitter with you.

      --
      Have you ever noticed that anybody driving slower than you is an idiot, and anyone going faster than you is a maniac?
    4. Re:Apple's extortive prices by jbwolfe · · Score: 2
      Not convinced. This:

      Neither Apple nor Time Inc. would discuss the exact financial terms of the agreement, but Mr. Cue said Time Inc.'s heft did not influence them. "We offer the same terms to everyone no matter how big or how small," he said.

      does not mean the rate wasn't negotiated lower, with other concessions on behalf of Apple. Time has a huge library. Key word: "offer"... The terms are necessarily complex with a deal that involves this much money.

      --
      Have you ever noticed that anybody driving slower than you is an idiot, and anyone going faster than you is a maniac?
    5. Re:Apple's extortive prices by StuartHankins · · Score: 2

      Time Warner (TWX) was valued at 34B today. If Apple really really wanted Time's offerings, they could buy them out.

      30% for access to the Apple market is a bargain. I know I won't play around with paper magazines (my apartment's metal mailboxes let rain soak the contents sometimes) and I'm not playing around with entrusting other sites to have my credit card info, using their online service to fetch or read a magazine etc. I'm far far far more likely to buy a subscription that I can read on my iPhone / iPad. There are others like me. I'd bet quite a few.

    6. Re:Apple's extortive prices by StuartHankins · · Score: 3, Interesting

      I do know something about publishing, having been Director of Production for a National magazine in the mid-90's. 30% is not a bargain... it's a STEAL for the publisher! Why? Waste from press runs, torn/mutilated copies, backorders, 3-month trials (counts as a subscriber to advertisers and the Audit Bureau of Circulations even though they didn't pay), subscriber audits, unexpected run outs because an issue was popular, people upset because you don't have a particular issue etc etc etc. All of that goes away with digital.

      No more bluelines, no subscription department, no bank runs, no handling cash. Your people can work from anywhere in the world. Put a button in your mag to allow the reader to post on Twitter or Facebook to gather more eyes. It's a steal, I tell you. Apple has the most eyes on digital media right now.

    7. Re:Apple's extortive prices by whisper_jeff · · Score: 2

      Thirty percent is absurd.

      Said like someone who has absolutely no clue what they're talking about.

      Giving up just 30% - keeping 70% - is insanely awesome. On the physical side, work for a publisher and find out how much it costs to print, warehouse, and ship a publication, not to mention that you only get a percentage of the price (typically around 40%-ish of cover) through the distribution channel (after all, stores need to make money so they get a cut of the price...). I won't bother pointing out how your complaint doesn't hold water on the digital side either since someone else already pointed that out.

      30% is a sweet deal and the only people who complain about it are people who are utterly ignorant of the costs of doing business.

    8. Re:Apple's extortive prices by StuartHankins · · Score: 2

      If you can do better, do it. I'm sure if you can work out the logistics that people will flock to your service. No, really, back up your claims and just do it. I will applaud you, because what Apple is doing hasn't been matched by any of the other companies in this area, and quite a few of them have a HUGE amount of expertise in the industry. If you can beat them, my hat's off to you.

    9. Re:Apple's extortive prices by BasilBrush · · Score: 5, Informative

      Apple is up front and honest about what their take is. It's 30%. Amazon has deceptive practices - they've fooled you and they've fooled many more.

      A $9.99 ebook, same price at both Amazon and Apple iBooks. Apple takes $2.99. Amazon takes $4.89. (49%)

      http://andrewhy.de/amazons-markup-of-digital-delivery-to-indie-authors-is-129000/

      Speaking as yet another person who does actually know about digital downloads, having sold them myself, Apple's 30% is indeed a bargain. Prior to them being on the scene the distributor for my mobile software downloads was taking 43%.

      Anyone who says Apple's 30% is unreasonable is simply showing that they don't know what they are talking about.

  4. Wake me up .. by Idimmu+Xul · · Score: 4, Insightful

    when Apple stop being Mormons and you can buy Playboy!

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    1. Re:Wake me up .. by rolfwind · · Score: 4, Funny

      Playboy. How quaint. Is that what the Amish boys fap to in their outhouses?

    2. Re:Wake me up .. by Nerdfest · · Score: 2, Funny

      Well, it's a big improvement over pictures of Steve Jobs.

  5. Re:Makes sense... by willoughby · · Score: 4, Funny

    Whoa... I didn't know that. Would we have any photos of these sweaty teenage Chines girls.? .. er... for the archives...

  6. Re:Makes sense... by busyqth · · Score: 2

    Yeah, but who wants to hear about sweaty mexican dudes scraping plates?

  7. Re:Makes sense... by Kergan · · Score: 2, Interesting

    And your proof is? Mike Daisy's narratives?

    And your proof that Apple is doing anything worse than its competition is? The competition's reports on their contractors' work conditions?

  8. Re:Makes sense... by Dcnjoe60 · · Score: 2, Insightful

    And your proof is? Mike Daisy's narratives?

    And your proof that Apple is doing anything worse than its competition is? The competition's reports on their contractors' work conditions?

    Doing no worse than one's competition is not really a defense or a moral position. It just means that you aren't the only bad person out there, but it doesn't justify what you are doing. Prisons are full of people who didn't do anything worse than somebody else.

  9. Re:Makes sense... by busyqth · · Score: 3, Funny

    And your proof is? Mike Daisy's narratives?

    Nah, Mike Daisy wouldn't know a rosy-cheeked Chinese slave girl if she slapped him in the face.

    And your proof that Apple is doing anything worse than its competition is? The competition's reports on their contractors' work conditions?

    Apple's competition is much worse: they buy slaves from Apple, after they're old and tired, no longer full of energy in the bloom of youth.

  10. What they call "digital distribution" sucks by catmistake · · Score: 3, Insightful

    Newsstand, which was introduced in last year's iOS 5, was a great idea: Put all of our favorite news sources all in one place, and let readers buy magazines from the app just like they'd buy a magazine off a newsstand. There was hope that this new purchasing and subscription service would be journalism's savior. Finally, a way for journalism to be profitable.

    Problem was, by the time Newsstand was released, it was a dud app. The app worked fine, but it was a dud because none of the magazines you actually want to read were on there.

    No, no, no. What they are doing is not digital distribution of the same content found in the printed periodicals. What they are doing is forcing down the consumers throat some one's sick idea of what periodicals should be in the future as seen from a Harry Potter movie a decade ago. The paradigm sucks royally. Every single new issue is a discrete new application, not a document. While I find that detail bizarre, in theory its not a terrible idea. But the implementation is horrifying. Its so far from what it should be its absurd. Newsstand isn't failing because of a thin roster, Newsstand is failing because the implementation is a terrible idea. A subscription through Newsstand is nothing like a real subscription. Its not even like the web model, which at least has become familiar. The subscriber is forced to learn to operate a new application every single edition. This is anathema.

    Even operating systems that function in an entirely different manner do not do this: Windows is actually very similar to Ubuntu or Macintosh from a users perspective because they are all using common functions at the desktop level, in effect while the colors and shadows may be different, its still all menus, windows, icons, clicking and dragging. What Apple and the publishers that are embracing the Newsstand model are doing is madness... new applications that are nothing like anything that has come before! And each new edition (app) has the potential, and in practice it is so, to be entirely different from the last, making anything learned about how the last edition functions worthless. I understand the frustration of users, and it is not what the article is claiming, and I can only imagine the strain on resources that each new edition of a periodical poses for publishers.... they now need a development team.

    I'm not sure they are still around, but once there was an Austin based startup called "NewsStand, Inc.," whose model was exactly what publishers and subscribers would suspect, but they were ahead of their time. What you saw in their reader was exactly what you saw in the printed edition. The subscriber model was very similar, if not identical, to the traditional model. I'm not certain, but I think Zinio has a similar model to this. Originally, viewing pdf's on a screen wasn't ideal: the software and hardware was slow to respond to the users commands. But now the software is pretty good and the hardware can handle fast screen redraws and is nimble enough to keep up with the user. pdf's used to require a "pdf warning" next to the links so as not to upset the user downloading and not expecting it, which would tie up their browser and possibly crash it because of the file size. This has been mitigated by the steady progress of technology: our browsers, readers, and graphics card and network connections can now handle the graphics rich content, and it just doesn't bother anyone anymore. Many ebook readers (those reading, not necessarily the hardware) actually prefer to read a document that is identical to the printed piece.

    The mistake Apple and publishers are making is to assume that the old publishing model is broken or outdated. It isn't! It is merely being encroached upon by the web model (namely, free content), but is fundamentally sound. People, for the most part, like magazines and newspapers the way they are. The idea to move from a document based model to an application based mode

  11. Wrong. Apple's cut was NEVER the issue by jamrock · · Score: 5, Informative

    When Apple announced the terms for Newsstand, the 30% cut was not the major bone of contention between the magazine publishers and Apple. It was the fact that Apple refused to pass on subscriber information automatically. Instead, subscribers had to click an "Allow" button in a dialog box asking if they wanted their personal information sent along to the publishers. The publishers were outraged that Apple made the process opt-in, dramatically reducing the treasure trove of information they could sell to advertisers.

    I have no idea if Apple made concessions to Time on the issue of subscriber privacy, but knowing them I think it's unlikely. As far as Apple is concerned, folks with iTunes accounts are Apple's customers, and subscriptions through Newsstand are just some of the services that they offer. I'm actually with Apple on this one. The terms for Newsstand make it clear that subscribers should have a choice about the disposition of their personal information, while the publishers treat it as something to which they are automatically entitled.

  12. Re:What do you get when you combine Apple and Time by jo_ham · · Score: 4, Funny

    Or alcohol, depending on what process you use ;)

    Although I prefer pear cider myself.

  13. Re:Makes sense... by jo_ham · · Score: 3, Insightful

    And your proof is? Mike Daisy's narratives?

    And your proof that Apple is doing anything worse than its competition is? The competition's reports on their contractors' work conditions?

    Doing no worse than one's competition is not really a defense or a moral position. It just means that you aren't the only bad person out there, but it doesn't justify what you are doing. Prisons are full of people who didn't do anything worse than somebody else.

    That wasn't his point and you know it. The supposed "moral superiority" of Apple's competitors is frequently used as a justification for hating them or for boycotting their products (it's not difficult to find "this is why I don't buy Apple and only use XYZ's products instead" comments here on /. and elsewhere) when in reality the alternatives are no different, and sometimes worse.

    This does not excuse either position of course; we've got to continue to push for elimination of worker and environmental exploitation.