San Jose, Calif. – Apple (NASD:  AAPL) is developing a digital subscription
service for newspapers, The San Jose Mercury News reported. The report cites
Roger Fidler, head of digital publishing at the Donald W. Reynolds Journalism
Institute, as saying Apple is expected to demand 30% of revenues from newspaper
subscriptions sold through its App Store, and up to 40% of any revenue
generated through advertising on the mobile applications.

Publishers reportedly
instead wanted to pay Apple a flat fee rather than a percentage of revenues, and
include the mobile apps in print subscription fees.

"Obviously, Steve Jobs
sees this as a significant revenue stream for Apple in the future," Fidler
told the Merc.



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