Time Magazine Validates the Year of the App Subscription

We predicted that 2011 would be the year of the app-based subscription -- and in just a few weeks, we're seeing evidence that validates our prediction published in "Birnbach Communications' Top Predictions for 2011, Part I."

The New York Times reported "Time Inc. has begun selling subscription bundles that include apps that run on the Android tablet software from Google." Time still wants to sell subscriptions through iTunes, too, but negotiations have been slow.

Meanwhile, the Times reported online today a breakthrough we've said is necessary for magazine publishers and subscription platforms: "Apple Offers Subscriptions for All iPad Publications."

Here are key points about the new service, according to the Times:

• Revenue from subscriptions sold through the App Store will be shared. Apple will keep 30 percent, and publishers will keep 70 percent. That is the same revenue-sharing split that applies when apps of single-copy publications are sold through the App Store.
• Apple said it would not restrict publishers to selling their apps solely through Apple. And when publishers do sell apps outside Apple’s store, they will keep 100 percent of the revenue.

Also check out Forbes' coverage, "Apple Introduces Subscriptions — But There’s a Catch."