STEVE INSKEEP, host:
Apple Computer has unveiled its subscription service for buying magazines, newspapers and music on iPads and iPods. The move boosts the companys position as a gatekeeper for Internet content.
But as NPR's Wendy Kaufman reports, not everybody is happy with this new arrangement.
WENDY KAUFMAN: Magazine publishers and other content providers wanted a way to offer subscriptions with a single click directly from their own apps. But the new the rules laid out by Apple are not what they were hoping for. Apple will take a hefty 30 percent cut of the subscription price and it won't allow publishers to offer consumers better deals outside of Apple's App store.
Nina Link, who heads the Association of Magazine Media, a major trade group, says shes frustrated by Apples approach.
Ms. NINA LINK (President and CEO, Association of Magazine Media): From what we understand, its not as flexible as it needs to be.
KAUFMAN: And Apple wont allow content providers to have links inside their apps that take consumers to external sites to make a purchase. So for example, Amazon will have to remove the links to the Kindle store from its apps on iPhones, iPods and iPads. Amazon had no comment.
Philip Elmer-Dewitt writes a blog called Apple 2.0 for Fortune Magazine. He says from the publishers perspective the rules are draconian.
Mr. PHILIP ELMER-DEWITT (Journalist, Fortune Magazine): If the terms dont change, I dont see how Amazon and the others can continue to have apps in the app store. I predict they're going to fall out.
KAUFMAN: But he goes on to say if publishers and others put enough pressure on Apple, Apple might be forced to modify its policies.
Wendy Kaufman, NPR News.
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