iPad 2's Biggest Enemy May Be Apple's Subscription Plan

28.02.2011

The iPad was supposed to be a noble savior, rescuing newspapers, magazines, and book publishers from their Internet-wreaked business models. For a while, it seemed like it was working: During the iPad's debut, Apple trotted out major book publishers (Penguin, HarperCollins, Simon & Schuster and Hachette Group) in support of the iPad and Apple's new iBook Store.

In a volley against Amazon Kindle, Apple allowed book publishers to raise prices on e-books and took a smaller royalty (30 percent compared to Amazon's 70 percent). This pressured Amazon to make massive policy changes that were more aligned with Apple's policies.

Then Apple unleashed its in-app subscription service. Far from a savior, the service makes Apple look like a bully kicking a guy when he's down. "We believe that your new policy smacks of greed," wrote , whose iPad app that aggregates news was recently rejected by Apple.