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Apple reportedly planning paid news subscription service

17 April 2018

Tim Cook, chief executive officer of Apple, speaks during an even last month introducing a low-priced iPad geared toward students.

American tech giant Apple is reportedly planning on launching a new premium subscription feature which will give users the opportunity to access a variety of news outlets in one single app.

There's an off-chance that we'll see this subscription-tier of Apple News launch as part of iOS 12, the next iOS update that's expected to debut at WWDC 2018. With smartphone sales suffering a small decline in shipments previous year, the first time that has happened, Apple is looking to expand its services revenue.

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A new, simplified subscription service covering multiple publications could spur Apple News usage and generate new revenue in a similar manner to the $9.99 per month Apple Music offering.

The plan is to integrate Texture - the magazine subscription app that Apple acquired last month - into Apple News, creating a premium subscription offering, according to the report. This offers millions of songs for $9.99 per month, and now has more than 40 million subscribers.

While Apple hasn't confirmed its plans for Apple News, the company in March signaled that it could be moving towards a news subscription model when it acquired the startup Texture.

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Apple has had limited success with its news services applications. During its last fiscal year, the company generated $30 billion for the division's top line, up 23% for fiscal 2017.

Paid subscriptions already play a huge part in Apple's ecosystem. It also gets a cut of subscriptions sold by third-party apps on the App Store. Texture previously had about 100 staff members.

Apple will reportedly share a portion of the revenue from the new service with partner organizations. However, it's likely that the company will use its current Apple News relationships to its advantage, as well as those that Texture brought into the mix (titles available on Texture included People, Rolling Stone, National Geographic, Sports Illustrated, and others).

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Apple reportedly planning paid news subscription service