I just read this in the Wall Street Journal:

Last month, [Time Inc.] was set to launch a subscription version of its Sports Illustrated iPad app, where consumers would download the magazines via Apple’s iTunes, but would pay Time Inc. directly. But Apple rejected the app at the last minute, forcing the Time Warner (TWX) unit to sell single copies, using iTunes as a middleman, multiple sources tell me.

Since then, Time Inc. executives “have been going nuts”, trying to figure out how to get Apple (AAPL) to approve a subscription plan.

Why is Time begging Apple to let it sell subscriptions?

Why doesn’t it just create a web-based magazine that’s customized for the iPad and sell subscriptions directly to customers? (If Jason could do that for blogs, why can’t Time do it for Magazines?)

Yes, Time would miss out on easy access to all those credit cards that users store in iTunes, but they’d get a direct relationship with their customers.

And a direct relationship would let them experiment with new payment options. A few examples.

• They could try “bill me later” techniques. (It worked for them in the off-line days. Maybe they can find an online equivalent.)
• They could give the first few pages of a magazine for free and charge for the rest.
• They could trying letting customers pay via their phone bills.
• They could hook up with payment companies like Super Rewards and, for example, give out free subscriptions to anyone who who signs up for Netflix.
• They could sell subscriptions on Amazon.
• They could let schools sell subscriptions as fund raising activities.

None of these options are currently available to Time via a relationship with Apple.

Best of all, Time could keep its customer’s billing information in its own database. That would let Time do things like offer Sports Illustrated subscribers an easy way to also subscribe to Time magazine.