Publishers balk at Apple's news subscription proposal over revenue split, access to subscr...
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.
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.
Comments
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%.
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
Plus it gives the publishers access to countless iPhone users with disposable income? I’m not crying for them.
There is a tsunami of backlash heading FaceBook's and Googles way, soon. Including legislation and user decline.
viva la freelancer!
But I do appreciate that Apple is refusing to handle over customer data as part of the deal.
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...