Sports Illustrated

Time Magazine on iPad now 28 cents

May 2, 2011: 7:28 AM ET

Apple and Time Inc. struck a deal, and the per-issue price fell from $4.99 overnight

Here's a window into the economics of magazine publishing.

Monday's Wall Street Journal reports that Time Inc. (TWX) and Apple (AAPL) have reached an agreement to allow subscribers of Time, Fortune and Sports Illustrated to get digital versions of their magazines on the iPad for free.

The deal breaks an impasse that dates back to high-level meetings Steve Jobs had with publishers back in February 2010. It also means that thanks to the special Senior Citizen Offer I received in the mail last week, I can read Time Magazine -- a  publication on which I labored for 27 years -- for $0.283 an issue on a free iPad app, down from the $4.99 Time Inc. was charging me the day before. And I get a free Ultronic Multi-Functional Global Clock Radio in the bargain.

What's the catch?

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