Several agencies that supply celebrity photographs taken by
paparazzi to People magazine have banded together to demand additional compensation for the use of photographs in People’s forthcoming
iPad app, according to Hollywood Reporter.

The entertainment trade publication says the negotiations
are delaying the release of People’s iPad app, an assertion Time, Inc., owners
of People, deny.

“Photo agencies are taking a keen interest in the iPad
because while online usage of their snapshots commands a fraction of what their
fees earn from print usage, they recognize the potential for the tablet market
to be a game-changer,” the article says.

If a recent study commissioned by a consortium of publishers
that includes Time, Inc. is to be believed, the tablet market could drive $3
billion in revenues by 2014. According to a report published yesterday by Folio,
digital consortium Next Issue Media, which includes Condé Nast, Hearst,
Meredith, News Corp. and Time Inc., hired a consulting firm to evaluate the
demand for tablet subscriptions. The firm found that the tablet market for
newspapers and magazines could create $3 billion in revenue.

If the market for tablet editions of publications does realize this potential, photographers and their agents are likely to press publishers to negotiate additional compensation for tablet usage over the next few years.

Related: Wired iPad Edition Launches, But Will Photographers Get More For Ads


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