Google Undercuts Apple with Subscription Service

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Google Undercuts Apple with Subscription Service

Feb 17 2011

Google Inc. unveiled a digital-content service that gives publishers a bigger cut of subscription sales than a competing program introduced yesterday by Apple Inc.

Google will keep about 10 percent of the fees charged by publishers, Chief Executive Officer Eric Schmidt said today in Berlin. Apple said it’s keeping 30 percent.

"Google’s proposed 10 percent fee is much closer to something we would find to be sustainable based on the margins that we’re operating under," said Jaimee Steele, a spokeswoman for online-music provider Rhapsody International Inc.

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