Published: Tue, April 17, 2018
Technology | By Christopher Mann

Apple may debut its own news subscription service within the next year

Apple may debut its own news subscription service within the next year

Now, though, a report claims Apple will be putting the newly acquired Texture to work, using it to integrate a premium news and magazine subscription service into Apple News.

The new service would be exposed to customers through an upgraded Apple News app, mirroring Apple's integration of its $9.99 Apple Music subscription inside the Music app.

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Apple shares are up 0.5% to $176.72.

If Apple goes through with these plans, it would be treating news similarly to how it treated music around the creation of Apple Music. Several years ago ahead of Apple News, the company had Newsstand that combined magazine and newspaper subscriptions, except that this was done on per-publication basis meaning that subscribing to multiple publications could end up being rather costly.

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The news of this forthcoming subscription service comes after Apple cut 20 people from the Texture team after the acquisition. Exactly what that ratio will be has not yet been revealed. The staff was made up of about 100 people before Apple bought it, but Bloomberg points out that Apple also laid off 200 people when it picked up Beats in 2014. Services revenue grew 23% to $30B in FY17, but execs have a goal of $50B by 2021. At the time, Beats Music had fewer than a million subscribers, and Apple has turned that into more than 40 million paying users. The line item, which includes iCloud, Apple Music, and App Store revenue, posted $30 billion in sales for 2017. During a recent earnings conference call, Apple told analysts it had a total of 240 million paid subscriptions, with 58 per cent year-over-year growth. If anything, Apple Music showed how important free trials can be.

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