Altering the balance in favor of more subscription-based content could transform Apple News from a library- or RSS-like aggregator into more of a store.
Apple Inc. plans to integrate recently acquired magazine app Texture into Apple News and debut its own premium subscription offering, according to people familiar with the matter. Some analysts in the past have suggested that Apple should look into getting into a more subscription-like business model, and this certainly sounds like what Apple could be doing.
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While we don't know precisely when this service will launch, we do know it'll land within the next year which indicates Apple may be gearing up to announce it at WWDC 2018 and launch it formally alongside iOS 12 this fall. Apple intends to release an updated Apple News application with the subscription service integrated, and plans to share revenues with magazine publishers that are in the program. Services revenue grew 23% to $30B in FY17, but execs have a goal of $50B by 2021.
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Apple's services business is orders of magnitude smaller than its hardware business, but the company has had success with its Apple Music service, which now boasts almost 40 million subscribers.
Currently, Apple sells subscriptions for iCloud storage and Apple Music. Texture previously had about 100 staff members. Now, Apple Music boasts more than 40 million subscribers. It's clear the company is looking for the same success story with its upcoming news subscription.
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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.