Publishers frustrated as Apple blocks iPad subscriptions

Publishers looking to offer subscriptions to digital versions of their magazines on the iPad have been blocked by Apple, as the company has allegedly rejected subscriptions from the App Store without an explanation.

Last month, Time Inc. submitted a subscription version of its Sports Illustrated iPad application to the App Store. Apple, at the last minute, rejected the software, forcing the magazine to sell single copies of the publication, according to Peter Kafka of MediaMemo.

It’s not just the publishers who want subscriptions: reviews for magazines like Sports Illustrated are overwhelmingly negative as users are dissatisfied with the $4.99-per-issue price on the App Store. Currently, out of 147 reviews, 97 users have given the magazine’s application one star. The average review is two stars.

“Not gonna pay what SI charges per issue,” user Russ1409 wrote. “Lower the cost, SI, get behind the new technology, but don’t gouge us.”

Sources with Time Inc. told Kafka that executives at the company “have been going nuts” in an attempt to get Apple to approve subscription plans. Subscriptions are an important part of the print business model, as they provide recurring revenue and customer data for advertisers.

Time Inc. officials were reportedly surprised by Apple’s rejection, as the company made a major effort to reach out to them and others. Officials were reportedly under the impression that subscription plans were acceptable to Apple.