Apple's New Subscription Model: Beginning of the end of iPad?

Apple recently launched their new subscription service to enable Newspapers & Magizines to sell subscriptions through the Apple's AppStore. Details can be found here

The most contraversial and publisher/consumer unfriendly piece is the new rule that requires publishers to sell their subscription for the same price or better in the Apple's AppStore. Here is why

• As a publisher, this requirement is utter stupidity (and monopolistic) as anyone with a little brain would tell you that publishers would be forced to move to AppStore. Why? Because they cannot sell the same product for less outside of the AppStore though they don't have to cut 30% of it to Apple. To give you an example, lets say that the cost of creating content is $.80. Assuming publishers want to have 25% profit, the price would be $1 which is what the consumer would pay excluding tax. With the new rules, Selling it for $1 means publisher will lose money as Apple takes 30% cut. So publishers are forced to price it as $1.43 ($.80+ 20% profit for publishers + 30% cut for Apple) if they have to retain their margins.
• As a consumer, because of the above restriction, either of the 2 will happen
• Publishers have to markup their price by 30% and consumer loses. Even if we consider 0% margin for publishers, consumers and publishers lose by not getting a fair price
• There is no competition in the marketplace and there is only one place to buy thus creating a monopoly. Publishers are forced to use AppStore since they don't gain anything by going out. Consumers would use AppStore as they don't get better price outside. Consumer loses again

It is not very publisher friendly and forces everyone to use the AppStore and costs the consumers & publishers dearly. I sincerely hope the FTC & DOJ that are reviewing this restriction and rule it monopolicstic.

Some more analysis below
Apple’s New Subscription Model Is Evil

Apple App Store subscription plan gouges publishers, eats their young
Apple's subscription model is boon to consumers, bad for publishers
Some publishers relieved, others irate over Apple subscription plan
Will Apple find publishing execs 'technologically innocent'?
Why Apple’s Subscription Rules Are Unfair to Publishers
Apple demands subscription revenue from publishers
Apple’s new subscription service: the good, the bad, and the ugly

UPDATE: Readability Inc in an open letter to Apple says "we believe that your new policy smacks of greed". I couldn't agree more