Time Inc., who has been aggressively publishing their iPad magazines as they try to beat others to market, still seems to be having trouble with figuring out digital magazines.This time it's photo agencies trying to negotiate with the Time-owned People magazine over compensation for celebrity photos.
The two parties have been trying back and forth to negotiate a deal, but it seems they can't come to an agreement. AS Reuters points out, these negotiations could set a standard for the industry from here on out.
The rumor right now is that this is delaying the App's release past it's targeted August launch date. However spokespersons for People say that the "People iPad application launch date has absolutely nothing to do with photo agencies." While some executives familiar with the App said that August was always more of a "soft" deadline."
As for pricing, those familiar with the subject say that it's expected to cost $4.99 an issue, which is what Time Inc. typically charges for their magazines. Are they trying to make that the digital magazine standard? More than newsstand price?
One look at the reviews on any of their magazines will show you that people aren't happy with the asking price. Popular Mechanics has their own iPad edition of the magazine for $1.99, and most of the App Store reviews say positive things about the pricing and content.
Somehow, Time still can't figure it out. If it's about money, which it always is, price it competitively. We imagine that its much easier to sell five magazines at $1 than it is to sell one magazine at $5.