Apple to launch Netflix-style news service to push subscription revenuesSohini Mitter
Apple News is likely to be integrated with the newly acquired Texture magazine app that hosts content from over 200 publications.
The era of subscription-based content services is truly upon us. From sports and entertainment to news, consumers are increasingly willing to pay for good content, and producers and publishers cannot wait to seize the opportunity.
Apple might be the latest to join the bandwagon. It recently acquired magazine app Texture and is working towards integrating it with Apple News to roll out a premium subscription-driven service like Netflix. The move is part of Apple’s push towards content services that also includes Apple Music and original video programming.
The iPhone-maker is integrating Texture’s technology and staff with the Apple News team, Bloomberg reported. Texture, which was acquired by Apple last month, allows readers to access 200 magazines at a monthly subscription of under $10. It houses some of America’s leading magazines including Vogue, Vanity Fair, Bloomberg Businessweek, Billboard, Entertainment Weekly, GQ, ESPN, National Geographic, People, Time etc.
Apple plans to launch its Netflix-style news service in 2018, and offer a part of the revenues to magazine publishers on the platform. Interestingly, Apple had followed a similar model with its music service too. It acquired Beats Music in 2014, which eventually led to Apple Music that now has close to 40 million subscribers.
Texture is expected to strengthen Apple’s ‘Services’ division that also includes Apple Music, iTunes, iCloud storage, App Store, iBook downloads, Apple Pay, and original shows. Services forms the third-biggest business segment after iPhones and Macs. The division recorded a growth of 23 percent in 2017 generating revenues of $30 billion. Apple wants to take that up to $50 billion by 2021, riding on subscription-led offerings.
At the time of the acquisition, Apple SVP of Services, Eddy Cue, stated,
“We’re excited Texture will join Apple, along with an impressive catalog of magazines from many of the world’s leading publishers. We are committed to quality journalism from trusted sources and allowing magazines to keep producing beautifully designed and engaging stories for users.”
There is no indication, however, on the potential pricing of the news service. Apple could announce it during its annual Worldwide Developers Conference in June.