The Mercury News is reporting that Apple may have worked out a deal with media companies to launch a new newspaper subscription model for consumption over iPad. According to the report, Apple may get between 30% and 40% of all revenues generated using the subscription model. The launch will also offer media companies a much needed revenue alternative to the dwindling revenues from the traditional print medium.
The news is very much a rumor at this point especially considering the hefty revenue share that Apple stands to get from such an arrangement. A 40% revenue share is highly unlikely considering that users are not likely to pay more than the print subscription for consumption over the web and consequently, the revenues that media companies stand to make from the app model shall end up to be too low for sustainability.
What do you think?