Time Brings Subscriptions To The iPad
Laura Lang, Time Inc.‘s chief executive, and Eddy Cue, Apple’s senior vice president for Internet software and services, said in a phone interview that they had reached an agreement that would allow readers to subscribe to 20 Time Inc. magazines, including People, Sports Illustrated, InStyle and Entertainment Weekly, through the newsstand section of Apple’s App Store.
When I first read this, I skimmed it and came to the assumption that the deal was somehow specific to Time. However, further down in the article, Cue elaborates on the “agreement”.
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.
In essence, 30% to Apple, 70% to Time. Apple didn’t compromise in any way; it made the same deal to Time as it does to individual developers. Not many other companies can say that.