Multiple outlets are reporting this week that Apple is set to announce a newspaper subscription plan for the iPad tablet, one where revenue will be shared by the publishers and Apple.
As part of the deal, Apple will implement an opt-in feature that will let users share their personal info with publications. The publishers need that info to share demographics with advertisers.
Both parties have been in negotiations for such a plan since before the iPad launched in April. Publishers would not agree to the plan without the opt-in feature, calling demographic data “the most valuable asset.”
Although the exact figures are unclear, it is believed the deal will give Apple a 30 percent cut of all subscriptions sold, similar to the share they take for music.
Additionally, Apple might take as much as 40 percent of advertising revenue.
Result for: demographics
According to new figures from the Entertainment Software Association, 68 percent of American households play video games, an increase of just over 3 percent from 2008.
The report, presented at the E3 Expo, also added that “home console ownership” moved to 42 percent.
Adult gamers have been playing video games for, on average, 12 years, which actually fell year-on-year from 13, suggesting there is an increasing amount of new gamers. The average age of gamers now stands at 35 years old.
“This is the new golden age of entertainment software. Our products are now being enjoyed by over two-thirds of Americans,” added Michael Gallagher, CEO of the ESA. “As the findings of the 2009 Essential Facts illustrate, more and more Americans across all demographics are now embracing the interactive entertainment experience that computer and videogames provide.”
In terms of parental controls, 77 percent of parents said they believed current controls were “useful” and 92 percent said they were with their kids while they played games.
Result for: demographics
Redbox, the automated DVD rental kiosk company, has announced that they have hired their first “senior level videogames executive,” and plan to expand into video game rentals this summer.
“Our customers and retail partners have been really clamoring for video games, and Redbox is responding,” added Mark Achler, Redbox’s new VP of video games. “We are very actively engaged in putting out a video game offering. There are changing demographics, where we see the casual market continuing to open as more women become involved.”
The tricky part now is pricing. Redbox currently offers $1-a-night pricing for its video rentals, but it is almost a guarantee that the same pricing will not be given to video games, which retail for much more than DVDs and Blu-rays.
Achler added that Redbox will offer two types of kiosks; one with only video games and another with both games and movies. There will be titles for the PS3, Xbox 360 and Wii available.
“We think rental really has an opportunity to grow and lift the whole video game sector,” noted Achler.
