Apple is apparently seeking to expand the scope of its mega-mall cyber-store quasi-monopoly. Given the end-of-year holiday shopping cycle potential and emerging competitive slate market dynamics, in any case, I suspect we’ll see new iPads in November, not early next year.
Apple’s effort is aimed at luring more consumers to the iPad and helping publishers sell subscriptions, rather than single issues. The main hang-ups between Apple and publishers including Time Warner Inc., Conde Nast, Hearst Corp., and News Corp. are who controls data about users and how to split subscription revenue, the people said. Pricing for subscriptions also hasn’t been worked out.
The new storefront could be up and running within a couple of months, although the talks are ongoing and could fall apart. Apple may wait to unveil the initiative until they are ready to announce the next iPad, possibly in early 2011, one person said.