So Much For the iPad Saving the Newspaper Business

Remember how excited everyone in the newspaper business got when the iPad came out? How everyone was suddenly going to start to subscribing to digital versions of newspapers? Well, the San Jose Mercury News reports Apple is close to unveiling their subscription plan for newspapers, and it doesn’t look good for the newspaper biz.

Roger Fidler, head of digital publishing at the Donald W. Reynolds Journalism Institute in Columbia, Mo., said Apple probably will take a 30 percent cut of all subscriptions sold through the company’s online App Store, and as much as 40 percent of the advertising revenue from publications’ apps…

Publishers wanted to pay Apple a fee rather than a cut of subscription and advertising revenue and are not happy with Apple’s terms, he said. They had hoped to offer app editions as part of subscription bundles that include print versions of the paper. Instead, they must use Apple as an intermediary with subscribers.

40 percent?!!! That’s highway robbery. Steve Jobs has the media business by the balls and he knows it.