Is Apple Preparing to Launch a Premium News Service?
Is Apple Preparing to Launch a Premium News Service?
New service is likely to launch in the next year
17 April, 2018, 20:21
Before News, Apple had had Newsstand, which was essentially a market for purchasing subscriptions to individual magazines and newspapers.
American tech giant Apple is reportedly planning on launching a new premium subscription feature which will give users the opportunity to access a variety of news outlets in one single app. The new subscription offering would shift the revenue model from selling advertisements to participating publishers, to sharing subscription revenue with the those publishers, the report added. With smartphone sales suffering a small decline in shipments a year ago, the first time that has happened, Apple is looking to expand its services revenue.
"We are committed to quality journalism from trusted sources and allowing magazines to keep producing beautifully designed and engaging stories for users", said Eddy Cue, Apple's senior vice president of internet software and services in a statement after the company bought Texture last month. Apple is going to integrate recently acquired magazine app called Texture into their own Apple News portal. Seeing as how the company managed to take less than a million people who had subscribed to Beats Music and turn them into 40 million Apple Music listeners, it's not like they have no experience convincing people to hand over a bit of money every month.
Now costing $9.99 a month, the service will eventually be managed by Apple's own news team.
Apple needs successes like that to meet a bold target for its services division. Executives have said they're targeting services revenue of roughly $50 billion by 2021. Apple also gets a 15 percent cut from the subscription revenues that are being sold by third-party apps through the App Store, as pointed out by TechCrunch. Apple would then share a portion of that revenue with those publishers, the report says.
Job reductions at Texture aren't necessarily a sign that the news subscription effort is off to a slow start. Texture had about 100 staff. After the acquisition, 20 people were made redundant while the rest of the team was part of Apple News.
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