iPad Revenue Model for Publishers

The future of publishing will be shaped by those who dare push the boundaries, and Apple has made this into an art. Great ideas together with the power of technology has opened doors no one has thought of. That’s why the launch of iPad on 28th January 2010 is such a significant event. It is not just about some cool looking device but what it portends for the future of publishing, and what it would look like even a year from today. Both the naysayers and stargazers will have their say on this. My take? Apple’s business model will take off.

Apple’s vision will impact the publishing industry, no doubt about that. Based on liberty and sharing of revenue through a harvest model, it is very similar to Scribd’s. The two elements that Apple has incorporated into their business model for content providers are:

1. Apple allows publishers to set pricing
2. Apple takes a 30 per cent cut of sales of books

Consumers of Apple products have been trained to pay for online content. They happily fork out their dollars because they get what they want for a fee that doesn’t hurt their pocket at the push of a button. How easy is that? Real easy. The success of Apps is a testament to this. Media companies better start looking from the readers perspective of things if they want to catch this gravy train. Hachette, HarperCollins, MacMillan, Penguin and Simon & Schuster have already signed up with Apple for the iBooks application.


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