Tuesday, November 9, 2010

Amazon institutes 70/30 split on newspaper subscriptions

Amazon will be institute a 70/30 split on newspaper subscriptions, in line with what is offered by Apple in its iTunes App Store. The new revenue model becomes effective on December 1.

"We are constantly working at improving the Kindle magazine and newspaper experience for both customers and publishers," Peter Larsen, Director of Kindle Periodicals, said in a press release. "Building on the recent introduction of Wi-Fi-enabled Kindles and the upcoming availability of newspapers and magazines on Kindle Apps, we're pleased to add an increased revenue share and a great new tool for making Kindle better and easier than ever for publishers."

The two biggest obstacles to profitable tablet subscriptions for both the iPad and Kindle remains working out recurring subscriptions and customer information mechanisms.