Apple

WSJ: Apple creates a service with news by subscription and plans to take half the revenue of partner publishers

The remaining 50% will be distributed between the media. Their conditions are not satisfied.

Apple is negotiating with publishers about the launch of a paid subscription service for news from different media, but they are not satisfied with the proposed conditions. About this writes The Wall Street Journal, citing sources familiar with the situation.

According to the interlocutors of the publication, Apple wants to take half of its subscription revenue. The remaining 50% will be distributed among publishers depending on the amount of time users spend reading their materials. In this case, partners will not be able to obtain reader data, such as email addresses.

In a letter to Apple publishers, the service is described as “Netflix for News”, it will be created based on the existing Apple News application and include materials that the media hide with the help of the paywall. Estimated subscription price – $ 10 per month, but the cost is still under discussion, sources said WSJ. According to them, the service should start at the end of 2019.

Among those who disagree on such conditions, the WSJ calls the New York Times and The Washington Post. The Wall Street Journal also had doubts about working with the service, but the latest negotiations with Apple were productive, the newspaper said.

Apple spokesman declined to comment. Subscribing to news is one of the ways for a company to monetize its own services against the background of falling indicators of the main business of selling smartphones. In the previous quarter, iPhone sales fellby 15%, to $ 51.9 billion, while revenue from services (the App Store and a subscription to Apple Music) continues to grow.


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