Is Apple giving newspaper companies’ good value?
Newsprint companies are having problems with apple regarding the profits around applications for Ipad or Iphone. The main issue is that newspaper companies can sell their apps, and the readers can subscribe to their newspaper from their devices but Apple does not share the market information about such clients and also requires a big share of the profits just for having the app functioning.
If a newsprint company is having the costs of develop an Ipad application by covering all the salaries and costs and then on top of that have to share 30% of all their profits with apple and even like that they still can’t access the list with the names of the ones that are reading or buying your Ipad application, the question remain if it is really worth it.
If is correct to affirm that newspaper companies save money from printing materials and all the wages that come with the old fashion way it is than true that the fact that they need to share the profits without having any benefit from that by using apple apps does not reflect much of a saving or even does not reflect any market strategy development, as the newspaper companies still don’t know who their clients are.
That makes clear that Apple is not giving a fare value, but than what should news print corporations need to do?
It is obvious that is their duty to try to get to their public without losing money. The art of printing news is obvious dying, I think that we will watch to their slowly disappearance, and as consequence the companies needed to start getting into the new ways of spread their news by using the new technologies. It is evident that the key to their salvation is online newspapers and in a long way run the release news through Apps. I don’t think that the problem of the valuation that apple is doing with the newspaper companies is related to the 30% of profit share but with the reluctance from Apple to release the list with the clients that are reading through the news app and their lifestyle.
When analyzing the percentage of profit that apple is giving to newspapers we can easily check that apple is not giving a good value to the newsprint companies, so in my opinion that list is vital to the companies to tackle the 30% spent on Apple via advertising and other items for knowing who your audience is and redirect your attention to a direct marketing focus.
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