Apple eases rules on iPad, iPhone subscriptions

By the Associated Press | June 9, 2011 | 2:42 PM EDT

SAN FRANCISCO (AP) — Apple has made a change that could help newspaper and magazine publishers make more money when they sell subscriptions for the iPad and iPhone.

The looser rules make it easier for publishers to sell subscriptions on Apple Inc.'s hot-selling devices outside the company's online store.

Apple's original subscription policy dictated that publishers couldn't undercut the prices offered within their iPad and iPhone applications. Apple said Thursday that rule will no longer apply.

The greater flexibility is a victory for publishers because they have to share 30 percent of revenue from subscriptions sold through their apps. Now they can offer discounts elsewhere, such as through their websites, and still make more money.