Apple reportedly working on iPad ‘digital newsstand’

Bloomberg reports that anonymous sources have told them Apple is currently in negotiations to create a digital newsstand for the iPad in which publishers could sell magazines and newspapers. The newsstand would be separate from the app store in which some periodical apps are currently sold, and would permit subscriptions—a point of contention between Apple and some publishers lately as Sports Illustrated was apparently forbidden from offering a digital subscription of its own, and there are ongoing disputes as to who should control subscriber data and how to divide revenue from subscriptions.

Bloomberg reports that the store could theoretically be ready within a couple of months, but one source said Apple may wait to unveil it until the next iPad is ready to come out. Bloomberg pegs that at “early 2011”, but other sources have previously suggested that we could have the next iPad in time for Christmas.

Personally, I think it makes sense for this new initiative to be announced with the next iPad. Apple seems to like to do these things together for greater impact, announcing the new Game Center along with the new iPod models, for instance.

Apple may face an uphill battle on the matter of subscriptions. None of the major publishers seem to be happy about Apple’s current terms. One analyst compared Apple’s position to Sony demanding a cut of the revenue from television shows on its TV sets. Time Warner, publisher of the aforementioned Sports Illustrated and People, is concerned about Apple severing ties between the publisher and its customers. Not having access to information about subscribers would make it harder for magazine publishers to bundle print and digital issues together.

Meanwhile, publishers are also talking with Google about creating versions of their magazines for its Android tablets, which could also put pressure on Apple.

Apparently there could be more to Apple’s digital newsstand than just selling digital versions of print publications. It could also let companies such as News Corp, who own properties in multiple media, mix those media together—including Fox News videos within Wall Street Journal stories, for instance.

At any rate, it’s going to be interesting to see how this all plays out. Publishers are going to be very reluctant to give up the right to know who their subscribers are, something that’s traditionally been an important part of the magazine business. On the other hand, Apple is going to try to squeeze out every concession it possibly can, because that degree of control is how it makes its money. We’ll just have to wait and see what happens.

(Found via One Man and His Blog.)