Steve Jobs (Creative Commons)

“Apple  Inc. in recent weeks has accelerated its efforts to persuade publishers to join the company's first foray into selling newspaper and magazine subscriptions for the iPad tablet computer, according to people familiar with the matter. Apple could announce a print-subscription offering as early as the next month or two, some of the people familiar with the matter said."

This assuredly means three things: more money for Apple; an opportunity and challenge to make more money for newspaper businesses; and an option for consumers  to spend more money.

Apple’s much-anticipated introduction of an iTunes newspaper system will be the next wave in the newspaper industry’s online move.  Once again, Apple is delivering in the business of innovation and will remain the undisputed champion of entertainment and communications devices.  For anyone who has entrepreneurial aspirations - and is a student of business formulas - Steve Jobs is the prototype; his ability to create, innovate and control technology markets is second to none.  The energy it takes to produce fresh products every year is only exhibited by a small group of people throughout a generation. He is, without a doubt, this generation's Thomas Edison. 

This calculated business move leaves Apple poised to not only capture a percentage of the money from online periodical subscriptions, but it also gives Apple an opportunity to increase consumer demand for the iPad - already a hot item.

With the rumored introduction of a new iPad next year, I would expect a sudden boom in the sale of iPads and online newspaper subscriptions. But what does this transition to iTunes spell out for an ailing newspaper industry?; and what are the consequences for a consumer market that is less willing to pay for information and entertainment? For newspapers charging a subscription fee, strong and loyal customers will be at a higher premium in an already oversaturated industry.  The purchase of subscriptions will depend on the creation of likeable brands and the sustaining of already popular ones that are available.

In America, our loyalties are to familiar products and familiar sources.  Simply put, if we like McDonald’s burgers and Cheesecake Factory ‘s cheesecake, we do not get them anywhere else.  In the U.S. it is easy to see that most new things are distrusted until they are introduced and establish credibility over time.

For all of us who are consumers, we are rapidly losing one the last free things we have: online magazines!  We are being forced to become paying customers, at least for popular publications. (Ugh!) While this sounds harsh for many (myself included), it may provide a stimulus for a failing industry, and a re-emphasis on spending money on things that matter.  For all publishers who are reading this, we will only buy the best gossip magazines from iTunes. 

Reach Reporter Kai Parham here.

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