Apple To Launch The Netflix of Online Magazines – News Subscription Service

Must Read

E-Commerce Industry In India Worth $13.5 Billion In 2014: Will Cross $16 Billion In 2015

According to the latest report by IAMAI and IMRB International, the eCommerce industry in India reached a value of INR 81,525...

When A Guy Bought Google Domain For Rs 415 And Pulled The Search Engine Down!

Google is the world’s biggest search engine and it has got its own country-specific domains for almost every nation....

Can CBD Gummies Be Beneficial For College Students?

College students often feel more pressure than they have ever—or will ever—feel in their entire lives. Many students are...

Though Apple Inc. (NASDAQ:AAPL) has been consistent in the consumer electronics market, the Cupertino giant hasn’t lost its focus in the service division. To strengthen its service arm further, Apple is planning to launch a news subscription service within a year. Last month, Apple acquired digital magazine app Texture, which offers over 200 magazines for a subscription cost of $9.99 a month. Bloomberg reports that Apple will integrate Texture into Apple News and create its own premium news service.

Apple denied commenting on the report as the announcement has not been made public yet. The company reduced about 20 people from Texture soon after the acquisition. Available magazine in Texture includes Rolling Stone, People, National Geographic, Vogue, Wired, GQ, Maxim, Men’s Health, Entertainment Weekly, and a lot more.

“We are committed to quality journalism from trusted sources and allowing magazines to keep producing beautifully designed and engaging stories for users,” said Apple’s services chief Eddy Cue, on Apple acquiring Texture.

After Google’s much-hyped News Initiative, Apple now appears to be targeting a subscription offering for multiple magazines, quite similar to company’s music streaming service. That’s right, the service would be essentially like Apple Music, but for news and magazines.

Advertisements

Apple, the world’s most valuable and the most trusted company, is integrating a magazine app into its news venture to build a premium subscription-based service. Sounds much logical!

App Store downloads, iCloud storage, iTunes music, movies and TV show purchases, Apple Pay are some of the important contributors to Apple’s growing services division. An upgraded Apple News app with subscription offering will be helpful in generating more revenue from online content and services, and a percentage of the subscription revenue will go to the publishers. Looks like a win-win for both parties.

It’s still unclear how much Apple will be willing to share with the publishers. Apple currently takes 15% revenue cut from app subscriptions in the iOS App Store and it takes a 30% cut for regular app sales.

Apple did try a similar approach before. Apple used to have an app called Newsstand, which offered digital versions of newspapers and magazines. Later it was replaced by Apple News which started in 2015.

Apple News Service: A Netflix of Online Magazine

A simplified subscription service covering multiple channels could spur Apple News usage and yield more revenue, similar to Apple Music which provides unlimited streaming of over 45 million songs for $9.99 a month. Apple’s streaming service got a broader push after it acquired Beats Music and Beats audio devices business in 2014 for $3 billion.

Advertisements

At the time when declining advertising revenue has emerged as the biggest challenge for news publication, most of them have started taking a dive into the paid subscription-based model. But this has led to a bigger problem for readers who don’t want to get restricted to one such publication for their daily consumption of valuable information. Considering every publication has got something interesting and valuable for consumers, there is a need for a consolidated platform that could offer best of the content on regular basis – something that Netflix has done with digital content producers. Looks, Apple has taken a cue from there and gearing to solve one of the biggest problems of the near future.

Besides, Apple needs such leads to thrive in its services division. Sales from the services division grew 23% to $30 billion in company’s fiscal 2017. Apple has said, in a recent earnings call, that it had a total of 240 million paid subscriptions, with 58% YoY growth. Also, Apple has estimated to target roughly $50 billion in service revenue by 2021.

 

Tech giants like Google and Apple are gearing up to in the subscription-based services. The online publishers and the companies are being mutually benefited but what about the user? That totally relies on the appetite for paying for quality content. The above companies have just found a better way to squeeze money from our pockets. There is just one upside for the user – he gets all the subscribed content in one place which will add up to his indolence – is that what these companies want?

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest News

The Launch Of Smartphones And Other Devices In India Are Getting Postponed!

Dell, H.P, Lenovo, Xiaomi, Oppo and Vivo will delay product launches as India has not approved the import of...

In-Depth: Dprime

Will ‘TikTok By Microsoft’ Be A Winner?

For the last two years, TikTok has been in the public eye for all sorts of reasons. First, it was the exploded and unparalleled...

Facebook Subscription Model: Looking Beyond Ad Dollars?

Seldom do job listings create a stir this gripping. However, when the job listing in question is a stealth post from Twitter, with a...

Will The Online Food Delivery Market in India End Up Becoming A Two-Horse Race?

It's pretty much evident that the food delivery space in India is all set to get riled up soon enough as one of the...

More Articles Like This