French Newspapers Teamed Up To Negotiate With Apple

Reuters reports that eight French publishers, including sports daily L’Equipe and newspaper Le Figaro, teamed up to strengthen their bargaining power in negotiations with Apple over digital content distributions. The publishers are dissatisfies with Apple’s too high commission of 30% and tight control over magazines and newspapers on iPad.

If these publishers don’t obtain “key concessions” from the Apple, they will not offer their digital newspapers and magazines via the upcoming Newsstand app. Furthermore, the publishers have their own digital newsstand, on which they will push their digital editions, bundled offers and subscriptions to iPad owners. Pascale Pouquet, executive of Le Figaro, said:

“We’ll have to be ready to accept to lose some sales if we cannot come to terms with Apple".

So publishers would prefer to lose some money than to make profits through iTunes and accept Apple’s rules. However, it is known that Apple generally does not yield to pressure. Also some persons consider that Apple is at a disadvantage as Steve Jobs personally signed key media deals with digital content owners. And now there is new chief at Apple who will negotiate with the publishers.

Financial Times, famous business newspaper, has also opposed by releasing its own web-based app allowing people to subscribe and read its content on the iPad without the need to conform to Apple’s rules. Amazon also uses web-based app Kindle Cloud Reader to side-step the 30% commissions charged in Apple’s online store on each e-book sold.