Apple Inc plans feature to add into Apple News. It has decided to integrate magazine app Texture and debut its own premium subscription offering.
The move is part of a broader push by the iPhone maker to generate more revenue from online content and services.
The Cupertino, California Company agreed to buy Texture. It lets users subscribe to more than 200 magazines for US$9.99 a month. Apple cut about 20 Texture staff soon after.
An upgraded Apple News app with the subscription offering is expected to launch within the next year. The subscription revenue will go to magazine publishers that are part of the programme.
Apple used to have an app called Newsstand that combined several magazines and newspapers. However the publications were only provided on an individual subscription basis.
“People pay for music, they pay for video, and most news services are ad-supported.” “If Apple launches this as a similar business to Texture, they likely won’t have many subscribers.”
Currently, Apple sells subscriptions for iCloud storage and Apple Music. It also gets a cut of subscriptions sold by third-party apps on the App Store. The company could also choose to turn its original video content efforts into its own Netflix-like video subscription service.
Apple also gets services revenue from Apple Pay transactions, App Store downloads, iTunes music, movie, and TV show purchases, and digital book downloads.