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Time Inc. Signs Subscription Deal for Apple's iPad (BLOG)

A year ago, Time Inc., the nation's largest magazine company, chose to stay on the sidelines as its two major magazine rivals signed d...

A year ago, Time Inc., the nation's largest magazine company, chose to stay on the sidelines as its two major magazine rivals signed digital subscription deals with Apple Inc. AAPL -0.11%Now the Time Warner TWX +1.72%Inc.-owned company has followed suit—accepting the same basic terms that other publishers took last year.

Time Inc. on Thursday said its 20 consumer magazines, including Time, Sports Illustrated, and People, are now available for subscription on Apple's iPad. Until now single copies of Time Inc. publications were available for purchase on the iPad, but only subscribers to the print editions could get the digital edition automatically delivered to their iPad. The new digital subscriptions are available via Apple's App Store in the Newsstand category.

Both Condé Nast and Hearst Corp. struck similar deals a year ago. But Time Inc. had held out, unhappy with the terms Apple was offering. One issue: the technology giant won't share with publishers names and email addresses of people who subscribe to magazines on the iPad unless the customer volunteers it.

Media companies regard such subscriber data as crucial, allowing them to have direct contact with customers. This is particularly important now, as digital technology disrupts traditional distribution models. The direct access gives such companies a greater chance to keep those customers long term and to sell them other products.

Industry executives said that Time Inc. effectively got the same deal as other publishers, with some nuances. An Apple spokesman said the company offers the same terms to all publishers but declined further comment.

The shift in strategy follows a management change at the top of Time Inc. and Apple's continued success in the tablet market. Those familiar with Time Inc. said that the magazine company initially thought that if tablets powered by the rival Android software platform gained larger market share, Time Inc. might have greater negotiating leverage with Apple. Instead, Apple's iOS platform remains the dominant tablet platform. At the same time, marketers are funneling an increasing percentage of their spending to the Web.

In January, digital marketing veteran Laura Lang took the reins at the magazine unit. In an interview, Ms. Lang said she began talking to Apple as soon as she joined Time Inc. She said she couldn't comment on negotiations undertaken before her arrival.

"It was a priority for me to make sure that our publications are available where our consumers are," said Ms. Lang. "We now have what we need to deliver the right experience for them."

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