Apple made a subtle revision to its App Store policy, enabling extra content to be sold through free iPhone apps. It’s a move that immediately impacts the publishing industry, and it could pay even bigger dividends if the Cupertino, California, company indeed delivers its highly anticipated touchscreen tablet.
Apple’s earlier in-app sales model wasn’t ideal for publishers. Previously, in-app commerce was a feature exclusive to paid apps; free apps were not permitted to sell content. Newspapers and magazines already struggle to sway readers to pay for content to begin with, and charging for apps cuts off potential customers. By allowing commerce within free apps, Apple creates the opportunity for a free media app to serve as a gateway for readers to get hooked on a newspaper’s or magazine’s content, which could help lure them into paying for exclusive premium content.
If Apple does deliver a tablet, the key for publishers is to create a convenient experience that readers will pay for, as opposed to the content itself. A free app would be the first step toward offering that experience. (And then the publisher will have to figure out what to do about ads, but let’s not get too ahead of ourselves.)
It is speculated that the tablet will be designed like a 10-inch iPod Touch or iPhone, and will include the accelerometer, GPS, live video streaming and multitouch.
What’s in it for Apple? Primarily, squashing Amazon’s Kindle. Who would wish to read a digital newspaper or magazine on the Kindle’s drab e-ink screen if Apple delivers a multimedia-centric tablet?
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