Published: Tue, April 17, 2018
IT | By Lester Massey

Apple to launch a premium news subscription service, report says

Apple to launch a premium news subscription service, report says

Following its acquisition of all-you-can-read magazine service Texture in March, Apple is planning to launch a news subscription service, Bloomberg reports today. Executives have said they're targeting services revenue of roughly $50 billion by 2021.

Texture lets users subscribe to more than 200 magazines for United States dollars 9.99 a month. However, these are now sold individually.

About a month ago, Apple spent part of its enormous cash reserves on acquiring digital magazine subscription service Texture. This time, Apple let roughly 20 people go from Texture, including assistants, software engineers, and managers, according to one of the people familiar with the matter. That would involve a premium "News" subscription added to the existing app, similar to how Apple Music's subscription is inside the standard Music app. An app combining Apple News and Texture is expected to launch sometime in the next year. Texture had about 100 staff.

There will be some sort of revenue split between Apple and the publishers who will be featured in the service, but there's no details on that. Would Apple kick them out of the subscription program, if news became unfavorable?

Apple will likely carefully curate the partner organizations for its news service. However, it's likely that the company will use its current Apple News relationships to its advantage, as well as those that Texture brought into the mix (titles available on Texture included People, Rolling Stone, National Geographic, Sports Illustrated, and others). Apple recently announced that Apple Music has surpassed 40 million paid members, and while that may not be a realistic goal for the Apple News service, the company has proven that it knows how to market its services.

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