Publishers wanted to pay Apple a fee rather than a cut of subscription and advertising revenue and are not happy with Apple’s terms, he said. They had hoped to offer app editions as part of subscription bundles that include print versions of the paper. Instead, they must use Apple as an intermediary with subscribers.
Feels a little like one step forward and two steps back.
However, it is also not clear that the iPad will really generate significant numbers of newspaper readers if the content is essentially the same as in the print edition. There is a reason people are giving up the newspaper habit that does not have to do with some sudden aversion to paper. Look deeper.