Last month, the publisher was set to launch a subscription version of its Sports Illustrated iPad app, where consumers would download the magazines via Apple’s iTunes, but would pay Time Inc. directly. But Apple rejected the app at the last minute, forcing the Time Warner (TWX) unit to sell single copies, using iTunes as a middleman, multiple sources tell me.
Since then, Time Inc. executives “have been going nuts”, trying to figure out how to get Apple (AAPL) to approve a subscription plan. One of the more desperate suggestions, which apparently didn’t get traction: Pulling the publisher’s apps out of the iTunes store altogether.
Time says they were in communication with Apple throughout the application's development and had been told that the company approved of their plans.
Time's official statement: “We are working with a number of partners and potential partners and hope to offer in-app subscriptions some time later this year.”
Apple’s official statement: “We have two platforms that we support for apps of all types, including magazines: HTML5 provides an open platform for developers to create and distribute whatever they want, and the App Store which is a curated platform offering customers the largest offering of apps for any mobile device with over 225,000 apps and 5 billion downloads.”
To make matters more confusing, AllThingsD notes that Amazon and the Wall Street Journal have applications which bill customers directly.
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