Apple acquired the “Netflix of magazines” in the past month, and now, it is planning to create its own premium news service. According to the reports reaching us from our sources, Apple’s Texture acquisition will make the service which offers more than 200 magazines for $9.99 per month to be incorporated into the Apple News team. Further reports state that there will be a launch of a new Apple News app by next year and offer a subscription with a percentage of revenue shared to publishers.
Apple has attempted an approach of a similar nature before. Apple ended its Newsstand app for Apple News, as well as the original app used to offer digital versions of newspapers and magazines. Apple also previously partnered with News Corporation to create The Daily, an iPad-only news publication. News Corp later shuttered The Daily after close to two years; reason being that it lacked enough audience to create a sustainable business model.
This recent approach of Apple seems as if it is aiming at a subscription offering for multiple magazines like the Music streaming services of the company. The effort will depend on a craving for paying for quality news sources in which publishers will be offered a portion of the subscription revenue, although it is not clear what percentage Apple will be willing to divvy up. At the moment, Apple takes a 15 percent revenue cut from app subscriptions in the company’s App Store as well as a 30 percent profit for regular app sales.
Eddy Cue, Apple’s senior vice president of internet software and services said in a statement after the company bought Texture last month stated that, “We are committed to quality journalism from trusted sources and allowing magazines to keep producing beautifully designed and engaging stories for users.”
A subscription news service will increase Apple’s services which include storage through iCloud and music streaming through Apple Music.