Only three months ago, Apple CEO Steve Jobs was being hailed as a potential savior in the publishing world for getting magazines involved in the launch of the iPad. Now he’s involved in a behind-the-scenes tug-of-war over annual subscriptions and the question of whether to share customer data with the publishers.
“It is shaping up as a huge problem,” said one publishing insider.
Nobody seems willing to budge, and as a result, there are no annual subscription offers on the iPad, only single-copy sales of titles such as GQ, Time, Sports Illustrated, Vanity Fair and Wired.
Fortune’s arrival is imminent, and Glamour should have its app ready to roll onto the iPad in time for the September issue.
All publishers say they hope to offer subscriptions at some point. But that is not happening, creating tension between publishers and Apple. Sports Illustrated apparently had a subscription app ready to roll in June when its single-copy app was unveiled, but the app was rejected by Apple, according to All Things D.
The rejection has reverberated across the publishing world.
“Nobody wants to speak on the record for fear of offending Jobs,” said one insider.
Publishers are unlikely to budge. Subscriptions not only generate a consistent revenue stream, but they also furnish a treasure chest of demographic information. Nobody is denying that the iPad has generated excitement and buzz. Wired sold more than 100,000 iPad versions of its June issue at $4.99, in addition to the 74,000 copies it usually sells on newsstands.
Most predict the subscription issue will be resolved, although nobody is looking for a big breakthrough in the short term. One publishing executive predicted that it will get resolved when other e-readers start reaching a critical mass in the marketplace, including devices from Google, expected sometime in the second quarter next year.
“[Jobs] is playing hardball,” said the publishing executive, “he has an enormous advantage right now.”
“If Jobs antagonizes all of the content producers, all of the content producers will flee as soon as there is competition,” warned one publishing executive.
WaPo wary
The Washington Post CEO Don Graham is said to be worried about selling Newsweek to Avenue Capital because of its stated intention to use National Enquirer owner American Media to do much of the back shop production, marketing and sales, according to the Wall Street Journal.
The WSJ said that Avenue is attempting to reassure The Washington Post by pledging that AMI would have no editorial control over Newsweek.
AMI counts Avenue Capital as one of its larger stockholders.
AMI, which also publishes Star magazine and owns Radaronline, which has been breaking the taped rants of Mel Gibson, took over the circulation, ad sales and marketing of Playboy earlier this year.
The other contenders for Newsweek are 91-year-old stereo equipment mogul Sidney Harman, who is married to California Congresswoman Jane Harman, generating some blowback from her political foe Mattie Fein; former US News & World Report co-owner Fred Drasner; and TV Guide owner Open Gate Capital. The Associated Group, the Pakistan licensee for Newsweek, which was believed to be involved in the bidding earlier, is said to be fading as a contender.
Self love
We’re not sure who has the tougher job here. On July 17, Self Editor-in-chief Lucy Danziger and newly installed Publisher Laura McEwen were in Montauk, celebrating the September issue featuring Beyoncé on the cover and a new contributor, Dylan Lauren, daughter of Ralph Lauren.
Then, a week later, they were off. Danziger dashed to Zurich, Switzerland, to muscle through an Ironman Triathalon on July 25, which she completed in 12 hours, 56 minutes and 53 seconds. The race included a 2.4-mile swim, a 112-mile bike race and complete marathon of 26.2 miles. She finished fourth in the women’s 50-to-54 age bracket.
Meanwhile, McEwen, who took over last month from Kim Kelleher who quit to go to Sports Illustrated, is trying to reverse a 7 percent first-half ad page slippage with a new ad sales team she put in place this week.
The September issue, sold largely by her predecessor, is up 15 per cent over a year ago, which marks the third issue in a row with rising ad sales. That has cut the year-to- date deficit to only 3 per cent.
She appointed Laura Frerer-Schmidt as the new associate publisher this week, replacing Lynn Dominick. Anita Maiella is coming in as a second ad director from fashion director of Vogue, overseeing fashion and retail ads for Self. Lauren Hulkower-Belnick will be the executive director of beauty ads, coming from Vogue as well.