Service launched for publishers to avoid Apple cut

LONDON Thu May 5, 2011 8:31am EDT

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LONDON May 5 (Reuters) - Digital technology company Yudu launched a service on Thursday to help magazine publishers dodge the 30 percent commission that Apple (AAPL.O) charges to deliver content to iPhones and iPads through its App Store.

Yudu, whose online publishing tools help companies tailor their content for tablet computers, smartphones and e-readers such as the Amazon (AMZN.O) Kindle, said Apple had recognised its new service as compliant with its terms and conditions.

Apple had no immediate comment.

The new dual-subscriptions system from Yudu, whose customers include Reader's Digest and Haymarket, allows users to download publications onto their Apple device through the App Store, even when the purchase is made directly from the publisher.

Apple, which has a long history of tense relations with media companies, recently imposed new rules to try to force publishers to go through its App Store, allowing it to harvest commission revenues and customer information. [ID:nN01188842]

It blocked Sony's (6758.T) electronic-book application because it would have allowed users to read books bought through Sony's online store on their iPhones.

Apple also sells e-books for the iPhone and iPad through its own iBookstore.

(Reporting by Georgina Prodhan; Editing by David Cowell)