Wednesday, April 24, 2019
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Apple would be developing the "News Netflix" (and plans to keep 50% of its revenue)

The technological giant Apple will present a new news subscription service based on the Apple News application on March 25 at the Steve Jobs Theater (California, USA), according to the Buzzfeed portal on Tuesday.

However, according to sources in The Wall Street Journal, the US company has not yet reached an agreement with the publishers, since they are not happy with Apple's plans to keep 50% of the revenue of the new service. and divide the other half between associated editions, depending on how much time users spend in the application reading their articles.

The media consider such conditions unfair, but from Apple say they can earn a lot of money by expanding the subscriber base.

In addition, Tim Cook's company does not plan to share with partners the personal information of users, in particular, their email addresses and bank card data. According to the newspaper, this information is precisely that used by the media to build its own subscriber base.

Also, the editions fear that Apple's new service will prive of your paying audience, even at the cost of low prices. It is planned that the subscription to the "Netflix of the news", in which in exchange for a monthly payment users will be able to read an unlimited amount of materials from different editions, costing 10 dollars a month. However, the price could still vary.

Another issue of negotiation is the annual contract that the technological giant offers to publishers. While some want to agree on a longer cooperation, others, on the other hand, do not want to commit to long-term obligations.

Apple's attempt to earn money in services and not with devices

According to the newspaper, the editions, with which Apple is negotiating, currently distribute part of their content for free through Apple News. These media receive 70% to 100% of the revenue from advertising that is sold in their articles. In addition, Apple News allows subscription to any edition, thus leaving that publication receives 70% of the cost of the subscription in the first year and even more if it is renewed.

The paid news service is an attempt by Apple to make money on services, and not with devices, which currently sell worse than before. In early January, for the first time in 16 years, the company cut its revenue forecast due to the slowdown in iPhone sales in China.

Soon after, Apple announced plans to lower the prices of some iPhone models abroad. The company has not resorted to this step for 12 years, since the launch of the first model of its smartphone.

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