Published: Wed, April 18, 2018
Tech | By Anita Cain

Apple may become 'the Netflix of magazines' with paid-subscription News makeover

Apple may become 'the Netflix of magazines' with paid-subscription News makeover

The tech giant is planning to launch a paid subscription news service following its purchase of magazine app Texture last month, reported Bloomberg on Tuesday.

Bloomberg says Apple is now integrating the technology and employees behind Texture into its own News app and team to develop the service.

Bloomberg's report claims Apple has started moving Texture employees across to Apple, laying off approximately 20 staff members in the process.

Apple's fastest growing revenue segment is now their services division so it makes sense for them to attempt to grab some of the low-hanging fruit in the form of news subscriptions.

Apple's former attempt at an all-in-one digital magazine and newspaper destination, Newsstand, which was a built-in iOS app, was discontinued in 2015 after a six-year attempt in the industry.

If Apple charges a few dollars per month versus the current $9.99 cost for Apple Music or Texture as it exists today, the company could boost subscription numbers, he said.

A new report out of Bloomberg suggests Apple plans to launch its own news-focused subscription service in the next year.

Apple has had limited success with its news services applications. 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. Services revenue grew 23% to $30B in FY17, but execs have a goal of $50B by 2021. The acquired Texture app will be integrated into Apple News which will undergo several changes.

Currently, Apple sells subscriptions for iCloud storage and Apple Music. If anything, Apple Music showed how important free trials can be. Get twice-daily updates on what the St. Louis business community is talking about.

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