US publishers are facing a dilemma. As the business model of Apple's future subscription kiosk unfolds, the New York Times, the Wall Street Journal and the Washington Post are reluctant to integrate their titles into the platform. According to US media reports, this press service would allow any subscriber, for $ 10 per month, unlimited access to a range of publications. And Apple, which already has an online kiosk since the acquisition of Texture in March 2018, would count repatriate him within Apple News.
American newspapers hastened to rename this service "Netflix of the press". The basic promise is obviously salivating. Apple News, which operates differently in France and the Anglo-Saxon world, is installed on 900 million iPhones and more than 300 million iPads worldwide, and would be consulted daily by nearly 90 million people. people, according to the calculations of the "New York Times".
But the apple brand has struggled for several months to convince the largest American dailies to enter the dance. In question, financial conditions considered unacceptable. According to the Wall Street Journal, Apple wants to keep 50% of the subscription price ($ 5). The rest would be divided between the different titles (more than 200 are already listed within Texture), depending on the use of the readers. Clearly, the more articles are read, the higher the share perceived by publishers is high.
Risk of cannibalization
For large publishers, the financial risks are multiple. The New York Times and the Washington Post offer monthly subscriptions starting at $ 15 and $ 10 per month respectively. Given the distribution of revenues in the future kiosk of Apple, no chance for them to reach an equivalent amount per reader.
By selling off their content for Apple, these major publishers could probably expand their base of readers but they would also struggle to justify the rates of $ 15 and $ 10 paid by other subscribers, while the booth of Apple would propose for an equivalent price 200 additional titles.
Another point of contention according to the "Wall Street Journal", Apple would refuse to give publishers access to data subscribers to the new service of Apple News. Email, phone, banking, or data of hearings … all are valuable for newspaper marketing services.
A launch on March 25?
With or without the three most prestigious dailies of the American press, Apple seems anyway decided to launch. According to Buzzfeed, the brand will unveil its new information service at a special event on March 25th, on the Cupertino campus.
And this pay kiosk might not be the only product launched that day. The rumors continue to swell on a launch, in the spring, a premium service gathering press titles, video and music. An Apple Prime that would allow the group to offset the loss of revenue related to the decline in sales of iPhone. The firm wants this activity to generate $ 50 billion in revenue by 2021.