Publishers balk at Apple's news subscription proposal over revenue split, access to subscr...

Posted:
in General Discussion edited February 12
Publishers are objecting to plans by Apple to offer a subscription news service, according to a report, with the revenue distribution between Apple and the publishers themselves seemingly the sticking point preventing the rumored service from taking off.




Apple has been playing around with the idea of offering news as a subscription service since its acquisition of Texture, but so far it seems the publishers aren't playing ball with the iPhone maker's proposal. People familiar with negotiations between Apple and the publishers suggest it may all be down to money.

According to sources of the Wall Street Journal, Apple's pitch to publishers involves keeping roughly half of the proposed $10 monthly subscription. The remainder would be distributed to the publishers offering their content to the service, divided based on the amount of time users are engaged with their articles.

While finances are an important part of the deal, it is not the only thing that is an issue. It is claimed the New York Times and the Washington Post are among the major publications not to license content just yet, allegedly over a number of undisclosed terms.

There is also concern that publishers won't gain access to the same level of data about subscribers than they would from a normal subscription. Information such as credit card details and email addresses are said to be highly useful to news companies, as they can construct their own customer databases that can be used to market other products and services to readers.

It was believed that the relaunch of Texture as a premium option within Apple News would take place in the spring, but the ongoing negotiations suggests this may not be the case.

While still unannounced, there has been some evidence that a subscription service could be waiting in the wings for launch. The first beta of iOS 12.2 includes a section within Apple News called "Apple News Magazines," which is believed to be the rumored subscription service.

There is also the possibility of Apple introducing a News subscription alongside its ongoing original video content project, which is believed to launch sometime this year. It is even suggested Apple may be considering an all-in-one subscription for Apple Music, News, and the video content.
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Comments

  • Reply 1 of 22
    The question is not if but when for the former print based media to be happy to take whatever they can get in order to stay relevant, not to mention avoid bankruptcy.
    entropysn2itivguylolliverberndogbeowulfschmidt
  • Reply 2 of 22
    entropysentropys Posts: 1,648member
    MisterKit said:
    The question is not if but when for the former print based media to be happy to take whatever they can get in order to stay relevant, not to mention avoid bankruptcy.
    Quite so. Personally, I doubt I would be willing to pay very much for such a service anyway. Too much of the content is either incorrect, wildly untrue, or just sadly inane.
    edited February 12 80s_Apple_Guyn2itivguyMisterKitlolliverberndogAppleExposed
  • Reply 3 of 22
    With so many options to get news online, and real news not the twisted garbage we get from the mainstream media this doesn't seem like a big winner for Apple.  
    berndogmuthuk_vanalingam
  • Reply 4 of 22
    News providers have been slashing employee counts (even the fairly reputable ones).

    I don’t know about magazines, but I haven’t bought one in over a decade...

    Texture has to provide some value because they do have some content providers signed up, but 50% sharing sounds high.

    Maybe it’s a negotiating point and they’ll settle for 30%. 


    MisterKitlolliverAppleExposed
  • Reply 5 of 22
    With so many options to get news online, and real news not the twisted garbage we get from the mainstream media this doesn't seem like a big winner for Apple.  
    I'm curious as to what you define as "mainstream media" and who you prefer?

    In Canada we have several publications who like to put down the "mainstream media" when they're owned by Postmedia - one of the biggest news publishers in Canada

    https://en.wikipedia.org/wiki/Postmedia_Network
    baconstang
  • Reply 6 of 22
    Who in their right mind would give Apple a 50% cut?
    kkqd1337coolfactor
  • Reply 7 of 22
    Another upcoming flop for Apple. They are too greedy and arrogant. None of their services aside from Music have taken off.
  • Reply 8 of 22
    sflocalsflocal Posts: 4,548member
    Who in their right mind would give Apple a 50% cut?
    50% of something or 100% of nothing.  Not hard for me.

    Plus it gives the publishers access to countless iPhone users with disposable income?  I’m not crying for them.
    StrangeDaysberndogMisterKitbeowulfschmidtkrreagan2AppleExposed
  • Reply 9 of 22
    I hope Apple stands firm on this. No company should be allowed to share customer data.
    berndogMisterKitcoolfactor
  • Reply 10 of 22
    Who in their right mind would give Apple a 50% cut?
    When you consider the work that Apple will starting doing for the publications, including hosting the data, it's not really a 50% cut. Maybe 40%.
  • Reply 11 of 22
    mknelson said:
    With so many options to get news online, and real news not the twisted garbage we get from the mainstream media this doesn't seem like a big winner for Apple.  
    I'm curious as to what you define as "mainstream media" and who you prefer?

    In Canada we have several publications who like to put down the "mainstream media" when they're owned by Postmedia - one of the biggest news publishers in Canada

    https://en.wikipedia.org/wiki/Postmedia_Network
    I’m guessing Alex Jones, champion of the anti-MSM birther types. 
  • Reply 12 of 22
    kkqd1337 said:
    Another upcoming flop for Apple. They are too greedy and arrogant. None of their services aside from Music have taken off.
    What about Apple Pay, and maybe iCloud?.. not to mention iMessage and FaceTime. And iTunes (movies, etc)..
    AppleExposed
  • Reply 13 of 22
    jungmarkjungmark Posts: 6,684member
    kkqd1337 said:
    Another upcoming flop for Apple. They are too greedy and arrogant. None of their services aside from Music have taken off.
    So what services flopped?
    AppleExposed
  • Reply 14 of 22
    Let ‘em eat cake
  • Reply 15 of 22
    They better get on board.

    There is a tsunami of backlash heading FaceBook's and Googles way, soon. Including legislation and user decline. 
    AppleExposed
  • Reply 16 of 22
    This is a chance for the dead tree media to save themselves from obscurity and crippling advertising sponsorship - it will also be a path for real journalism to return and allow opinion to flourish without the biased filter through which it is all run today. Hopefully  quality the likes of which we have not seen in thirty years or so will make it back into the public arena and the really good writers will be back on the payroll.
    viva la freelancer!
    MisterKit
  • Reply 17 of 22
    If Apple is demanding 50% of the subscription fee, I do think that's a bit high and greedy on Apple's part. Apple creates and maintains one platform for all publishers. Publishers need to create fresh content on an ongoing basis. That's gotta be more costly and they deserve to be paid for their contribution to the process.

    But I do appreciate that Apple is refusing to handle over customer data as part of the deal.

    berndog
  • Reply 18 of 22
    I know absolutely nothing about what it takes for Apple to provide this service, and what benefits it will provide to the publishers, but I absolutely know that 50% of revenue is too much and that Apple is greedy! /s
  • Reply 19 of 22
    I don't really care what Apple takes as a split! It's a free market! If the news agencies don't want to be part of it... then don't!

    People are going to realize (eventually) that they don't want their data bought and sold without their permission. When they do, they will migrate to Apple because Apple has been the only big tech company to consistently give a crap (stated publicly and demonstrated by their actions) about not collecting and selling user data. Other companies (Google, Facebook...) give lip-service to "protecting" user data only to be shown later to be selling it on the side to whoever has big pocketbooks.

    The US should put one of these CEO's in jail for year or two when they lie and cheat or deliberately miss-lead the public or congress about collecting user data...  It will stop very quickly!

    AppleExposed
  • Reply 20 of 22
    bitmodbitmod Posts: 244member
    berndog said:
    This is a chance for the dead tree media to save themselves from obscurity and crippling advertising sponsorship - it will also be a path for real journalism to return and allow opinion to flourish without the biased filter through which it is all run today. Hopefully  quality the likes of which we have not seen in thirty years or so will make it back into the public arena and the really good writers will be back on the payroll.
    viva la freelancer!
    Wrong. It gives Apple the power to play dictator and censor whatever media doesn’t fit Tim’s agenda.
    Who wants Apple censoring their news? Nobody. 

    This service is DOA again. Apple keeps trying to take control of the publishing industry - and keeps failing. 
    With modern responsive web standards, there is zero reason for a person to switch from browser to an app based platform, or the publisher’s own app. For publishers, it makes even less sense to give Apple even a 5% cut of revenues as the value to them is more exposure for their advertisers - not the medium. And their bread and butter are the small guys - not just Nike and Nissan.

    I said this exact thing 6 years ago and I was right. Now Apple is back trying it again - I will be right again. 

    Where are the new iMacs? I wish Apple would focus on innovation again and design great hardware and software. This focus on services is screaming they are completely out of ideas.

    I had to help my dad out with his new Dell (Which he bought because Apple was almost twice the cost for 2 year old technology, but he really wanted to switch - waited a frickin year). - and Windows sucks!
    But if Microsoft ever released a half decent OS - Apple will be out of the desktop game in a nano second... 
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