Following its acquisition of all-you-can-read magazine service Texture in March, Apple is planning to launch a news subscription service, Bloomberg reports today. Seeing as how the company managed to take less than a million people who had subscribed to Beats Music and turn them into 40 million Apple Music listeners, it's not like they have no experience convincing people to hand over a bit of money every month. 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.
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. Apple declined to comment. These plans are created to help Apple boost its services business to meet revenue goals the company has set for itself over the next few years. This approach would set it apart from Apple's previous Newsstand app, which gave users access to magazine subscriptions on an individual basis. Sales from that segment grew 23 percent to $30 billion in the company's 2017 fiscal year. The company recently said that it has a total of 240 million paid subscriptions across its stores, including apps, video, and music.
Apple will likely carefully curate the partner organizations for its news service.
Currently, Apple sells subscriptions for iCloud storage and Apple Music.
Apple announced plans to purchase Texture last month.
Since acquiring Texture, Apple has reportedly parted ways with 20 of Texture's 100 employees. Apple rarely cuts positions, but after the company acquired Beats, it released about 200 people.