The Logic Behind Apple’s Give-Us-Half-Your-Revenue Pitch to News Publishers
All it wants in return is half of all the revenue journalists make when they sell their stuff through a forthcoming new Apple subscription service.
Cue internet outrage.
The argument, made by everyone from my colleague Casey Newton to Apple blogger John Gruber: 50 percent is way, way too high — “insane,” in Gruber’s words — given that Apple normally takes 15 percent to 30 percent of the revenue it generates when someone buys something from its App Store. Insult to injury: Apple’s new arch-enemy Facebook takes zero percent when it helps someone subscribe to a publication.
So what is Apple thinking now?