Apple Wants 50% of Publishers' Revenue for News Subscription Service

Credit Apple

Credit Apple

Apple is reportedly taking a hard line with publishers during its negotiations for a proposed news subscription service.

Apple has talked with publishers including The New York Times, the Washington Post, and The Wall Street Journal, but they (and others) have concerns about Apple's terms. The event will reportedly take place at the Steve Jobs Theater on the Apple Park campus in California. Apple Music, for example, continues to grow at an impressive clip, with Tim Cook revealing during the company's most recent earnings conference call that the music streaming service now has upwards of 50 million subscribers.

"With much pushback from publishers Apple is realizing this news service bundle will have its share of hurdles to find success with consumers as well as content partners".

Apple doesn't typically hold more than one spring media event, though it could this year.

A CNBC report appears to confirm a lot of what we've been hearing, starting with Apple's plans to launch the service in "April or early May".

A premium news subscription could cost around $10 per month, the same that Apple Music now costs.

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BuzzFeed notes that instead of announcing new AirPods or a new iPad Mini, the company will instead focus on subscription services.

Regardless of how all this revenue-sharing works out, it sounds like Apple's video service will be integrated into the existing TV app on Apple TV and iOS devices.

The earliest event the company held was back in 2011, on March 2, so Apple has lots of time to cram in a product unveiling next month.

The launch would be Apple's latest push to grow its services revenue with a goal of hitting $50 billion (R687 billion) by 2020.

Amazon Prime Video and Hulu are both services with a similar offering, letting subscribers customize their package by adding additional premium channels to the video catalog each offers. In fact, the service now has 85 million monthly active users and is the biggest news app in the US. When it comes to subscriptions sold through the App Store, Apple keeps 30 percent of the price the first year.

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