During the test phase, the company will sell the digital magazines through iTunes.
Source: New York Time
While this is exciting/interesting news, I think that dedicated apps is ultimately the wrong way to go; imagine if rather than having the single iTunes application on your iPhone, you had to launch a separate application for each record company that you had bought albums from? It's okay if you have - for example - a subscription to Wired, but what if you buy single issues of different magazines? You're going to end up with lots of little single apps that you run infrequently.