Monday, May 7, 2012

Newsprint / magazines paying for Apple profits while taking a loss?

This is an interesting article on how print publishers, whose margins are already razor-thin, felt that they were being squeezed by Apple's 30% take.
"Apple demanded a 30 percent vigorish on all single-copy sales through its iTunes store. Profit margins in single-copy sales are thinner than 30 percent; publishers were thus paying Apple to move issues (my emphasis)."
Publishers are paying for Apple profits while taking a loss for each single-copy issue that is sold.  So why not move to Android?
"And while Google was more reasonable in its terms, Android never emerged as an alternative to the iPad."
I think that's a cop out, because it's a chicken-or-egg paradox, and anyway, what sort of fool willingly takes a loss on every sale?  If publishers can't figure this out, perhaps they should close up shop and quit.

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