UPDATED 13:01 EDT / FEBRUARY 02 2011

Apple and Murdoch Launch The Daily, Make Digital Publications Industry More Baffling

Apple enriches its app collection with The Daily iPad newspaper, costing News Corp $30 million to gt up and running. It has been some time since Rupert Murdoch first spread his plans of launching the digital newspaper to ensure revenues, considering that The Daily will require about $500,000 per week to circulate.  Apple joined the project expecting revenues also, and bearing in mind that the newspaper will cost 99 cents a week, it will need thousands of subscribers to get back its own investment. Murdoch expects half of the revenues to return from advertising. In order to have a rough estimate, between July and September 2010 Conde Nast’s Wired iPad app averaged 31,000 in monthly sales.

At first glance it might seem a bit awkward for Apple to have such deep involvement in this project, after having been more demanding of publications distributing content through the iPhone and/or the iPad. Earlier this week, The New York Times published a story on Apple having rejected Sony’s e-reader app, while allowing similar apps from Amazon and Barnes & Noble.  Other businesses such as Kobo feel aggrieved, as Apple’s decision of modifying its App Store terms will impact their businesses in a negative way.

It was mentioned that the rejection was based on an in-app payment issue, as Apple spokesperson Trudy Muller declared that Apple now required that if an app offered customers the ability to purchase books outside of the app, that the same option is also available to customers from within the app via in-app purchasing.

This misshapen string of regulatory updates has stirred things up in Europe, and in the next weeks the International Newsmedia Marketing Association will be meeting in London with the European Online Publishers Association and the magazine association FIPP to discuss this matter.  There are high chances of this disagreement to end up in court, Belgium and France having already taken the matter to the authorities.


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