FT heads towards a likely Apple showdown

The Financial Times says its relationship with Apple has “thawed” after launching a browser-based application that allows users to access its content outside Apple’s App Store.

On 7 June, the publisher unveiled a faster, automatically updating app built using HTML5 technology, available directly through a web browser. The browser-based application for tablets replicates the functionality of a native app, but lives entirely on the web, removing the need for downloads via iTunes.

The launch of app.ft.com comes as Apple moves to take a 30% cut of subscription revenue sold through iTunes and enforce rules requiring users to subscribe via the App Store rather than directly with publishers.

The changes would give Apple greater control over both revenue and the customer relationship.

FT.com managing director Rob Grimshaw said the publisher is uncomfortable with the new terms and is reviewing its position within the App Store.

Speaking at an ADMA seminar in Hong Kong, Grimshaw said the FT could potentially withdraw from Apple’s platform.

“We’ve been in discussions with Apple all the way through this process and we don’t want to end up in a huge fight with them,” he said.

“But at the end of the day it’s a business decision based on certain terms and conditions. We don’t feel comfortable with those terms and conditions so from a hard-headed point of view we need to be pragmatic and find another way to access the marketplace. That’s just business.”

“We are not the only publisher pushing Apple to say this is not the right way to do things and I think there are a lot of big players like Netflix who are saying they can’t work with this.”

The launch also follows strong growth in the FT’s mobile audience, which Grimshaw said is increasing at more than 50% year-on-year.

He added that within three years, mobile could account for as much as half of the FT’s total audience.

“There’s a revolution going on in consumption,” Grimshaw said. “We need to bring mobile right to the core of our operation.”