So it looks like The Financial Times are ready to take stand against Apple over their demands to take 30% of any subscription fee that the FT generates with the new in-app subscription model.
In February Apple announced that it would start selling subscriptions for iPad magazine and newspapers, part of the new model Apple would bank 30% of the fee.
While the less fortunate, like The New York Times, seem to believe they have little choice but to play by Apple’s rules, The Financial Times may choose to play a different game altogether.
A reuters report today suggests the FT and their managing director Rob Grimshaw isn't too happy with the current deal, "We don't want to lose our direct relationship with our subscribers. It’s at the core of our business model,” Rob Grimshaw said in an interview.
He also added that he thought that their could be an agreement with Apple, but also said to have dropped a hint that they could jump ship to Google’s Android. “If it turns out that one or another channel doesn’t mix with the way we want to do business, there’s a large number of other channels available to us.” He added.
Although no specific numbers for the iPad platform are available, the Apple device is thought to have increase subscriptions to as many 590,000 paying punters, as compared to an all-time peak of 440,000 for the pink paper version.
Digital revenues accounts for more than 40 per cent of the FT’s subscription income leading Grimshaw to remark, “We have something to lose. The publishing market as a whole is in a different situation.”
Only time will tell if Apple will be willing to budge, but if other News Papers lump it why should the FT get special treatment, we’d be surprised to see either party walking away from the mutually beneficial relationship without exploring all possible avenues.