Time Inc., the largest U.S. publishing house, signed an agreement with Apple to provide free access to the owners of the iPad to electronic versions of newspapers and magazines issued by the corporation.
iPad owners will be available for subscription to publications by Sports Illustrated, Time and Fortune. Earlier a similar step was taken to the subscription for another edition of Time Inc. – Magazine People. Thus, the publishing house hopes to increase the number of downloads of electronic versions and to increase revenues from advertising.
The conflict between Apple and Time Inc. occurred because of high rates of commission that Apple collect from our users at the conclusion of the subscription by In-App Purchase. This technology allows to purchase various goods and services applications for smartphones and tablets. For every purchase through In-App Purchase company Apple charges 30% commission.
Attempts by Time Inc. arrange payment of a subscription through their own servers met resentment by Apple. In the summer of 2010 conflict between the two companies reached a peak – the publishing house threatened to close all access to electronic versions of their newspapers and magazines for owners of the products of Apple.
The policy of the publishing company began to change after the dismissal of the director of Time Inc. Jack Griffin in February 2011. As a result, both sides failed to reach a compromise.