Magazine apps on iPhone

A little snippet from a bigger piece by Steve Outing on the American Editor & Publisher site. He's discussing ways to get people to pay for digital content:
Yet another model is to sell a custom news phone app rather than give it away. USA Today, for instance, offers a free downloadable news app for the iPhone, which offers a superior reading interface than USA Today's mobile Web site, and access to content is free using the app. Meanwhile, People Magazine has its own iPhone app called "People Celebrity News Tracker," but charges $1.99 for you to download it. Content is updated regularly with "instant" celebrity news and alerts from, including lots of photos. There's no monthly fee for the content on the People app, which is supported by advertising, but the one-time extra $1.99 purchase price can create another nice revenue stream, especially for a publisher with a large audience.
As you can tell from the first three words, he looks at various scenarios, including using Amazon and Paypal. Worth reading.