Apple is working on a new application for the iPad that will allow users to download electronic versions of newspapers, rumored to be called the iNewspaper.
The iNewspaper is expected to be similar to Apple’s electronic bookstore, iBooks. The information comes from industry sources. In addition to recreating digital versions of newspapers and magazines, the app could make it possible to integrate web features — such as video, audio or hyperlinks — directly into the publication
Apple and publishing companies, according to a Bloomberg report, are hung up in talks about revenue sharing, pricing, and subscriber data. Among the companies said to be in those talks is Rupert Murdoch’s News Corp., which has expressed interest in a digital newspaper on the iPad.
Of course, a number of newspapers and magazines already offer iPad-specific versions through their own apps. The New York Times was early to produce an Android app as well.
The iPad has been a huge success for Apple. Forecasts say it will sell 11 million units by the end of the year. But the problem will be convincing publishers to share part of their subscription revenue with middleman Apple. Apple is trying to insert itself as a middleman that doesn’t exist in other industries. But as the publishing world is learning, the digital model is different.
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