Businessweek iPad Edition adds Pressure on Publishers

Most magazine publishers have declined to accept Apple's terms for selling subscriptions to their iPad editions, limiting themselves and their readers to more expensive issue-by-issue sales instead, but Bloomberg Businessweek has just joined the growing pocket of takers with an iPad edition that's available only by subscription.

Readers probably won't mind. Even though they can't buy an individual issue, a one-month subscription only costs $2.99, well below the $4.99 cover price for a single copy in print. Existing print subscribers receive access to the iPad edition at no extra charge. "Our interest is in building long-term relationships with subscribers," said Paul Bascobert, president of Bloomberg Businessweek and head of business operations for the Bloomberg Media Group.

Most magazines have rebuffed Apple's subscription system so far because it keeps subscribers' personal information from publishers, which dearly want it for marketing and other purposes, unless subscribers specifically authorize Apple to share it. But every big magazine that accepts Apple's subscription terms puts pressure on its competitors to do the same. Bloomberg Businessweek rival Fortune only sells its iPad edition one $4.99 issue at a time, for example, but now faces much lower-priced competitor for business readers.