Published: Tue, April 17, 2018
Tech | By Amelia Peters

Apple is Launching a News Subscription Service Powered by Texture Acquisition

Apple is Launching a News Subscription Service Powered by Texture Acquisition

Customers would subscribe to a premium Apple News offering that would give them access to paid media content from a variety of magazines and news outlets. Apple is going to integrate recently acquired magazine app called Texture into their own Apple News portal. Now, Bloomberg believes that Apple is preparing to launch a new Apple News app over the next year or so.

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. The service gives users the option to subscribe to more than 200 magazines and read their content via the Texture app. The remaining Texture employees will now work at the Apple News division as the Cupertino tech behemoth hopes to disrupt another industry with a subscription service. It is only available in three markets: USA, the United Kingdom and Australia.

Apple's music subscription service, Apple Music, has successfully scaled an improved version of the Beats Music service from under 1 million to over 40 million subscribers in a matter of years.

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Apple has had limited success with its news services applications. Executives have said they're targeting services revenue of roughly $50 billion by 2021. In 2014, Apple spent $3 billion for Beats to jump-start its music services, and $15 million for BookLamp, which was then touted as a "Pandora for books". The company now sells subscriptions for iCloud storage and Apple Music. The giant is also generating extra revenues from the third party apps which made available on the App Store for the users. Texture previously had about 100 staff members.

Launching a news subscription service seems to be right up the company's alley and it could turn Apple News into the new "Netflix for magazines".

Apple will likely carefully curate the partner organizations for its news service. Apple cut around 20 people from Texture team shortly after buying the app in March, people familiar with the company's plans told Bloomberg.

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