Published: Tue, April 17, 2018
Hi-Tech | By Preston Stone

Apple Wants to Disrupt the News Business with a Subscription Service

Apple Wants to Disrupt the News Business with a Subscription Service

Apple is thought to be preparing to launch its own premium news service, according to a new report from Bloomberg.

While Apple did let twenty Texture employees go shortly after the acquisition, close to eighty people remain and they will now be focused on growing Apple News with the knowledge and technology they bring from their experience growing a digital magazine subscription service.

The Cupertino company now offers access to a variety of news services through its Apple News app, however, many of these require individual subscriptions.

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.

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Apple used to have an app called Newsstand that combined several magazines and newspapers, but the publications were only provided on an individual subscription basis. It is only available in three markets: USA, the United Kingdom and Australia.

Apple announced plans to purchase Texture last month. This will be a similar service as major companies will be offering content based on subscriptions. Apple Music, iCloud, and App Store revenues rose to $30 billion in the 2017 fiscal year, and the company would like that to be about $50 billion by 2021. The company now sells subscriptions for iCloud storage and Apple Music. In 2014, Apple spent $3 billion for Beats to jump-start its music services, and $15 million for BookLamp, which was then touted as a "Pandora for books". Since then, the company has turned the service into Apple Music and now has over 40 million paid users on the platform. Texture previously had about 100 staff members. Apple rarely cuts positions, but after the company acquired Beats, it laid off about 200 people.

Launching a news subscription service seems to be right up the company's alley and it could turn Apple News into the new "Netflix for magazines". After the acquisition, 20 people were made redundant while the rest of the team was part of Apple News.

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