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22.2.2011 Apple, Google square up

Apple and Google are stepping up their battle to attract publishers, having launched competing digital subscription services. Earlier this week, Apple rolled out a new subscription platform, made available to all companies running relevant applications on its App Store. The platform included newspapers, magazines, music and video, and marked an extension of a system originally developed for The Daily, News Corp's title sold only via the iPad. Content producers set the price and duration details, while Apple processes payments, and retains nearly a third of sales, as is the case regarding purchases completed through standard apps. "Our philosophy is simple - when Apple brings a new subscriber to the app, Apple earns a 30% share," Steve Jobs, Apple's ceo, said in a statement.

Google's rival offering, One Pass, works across the web and mobile, and has already secured Axel Springer, the media group, as a client.  The key differentiating feature of Google's service is that it commands 10% of any sales, considerably below the figure demanded by Apple. "We aren't in this to make money. Google makes money in other ways," Eric Schmidt, Google's ceo, argued. "We are trying to get money to people who are producing high-quality content. "Our intention is to make no money on it. We want the publishers to make all the money."

B.L. 22.2.2011