tech2 News StaffApr 18, 2018 16:31:55 IST
According to a report by Bloomberg, Apple will integrate the technology behind Texture with Apple News to bring the new "premium" subscription offering.
Texture provides a $9.99/month subscription fees to allow the users to access more than 200 magazines on its online platform. The upcoming news platform will share the subscription fee with the publishers of the magazines. The integrated platform is expected to be launched within next year.
The new platform is expected to boost the revenue for Apple, similar to what we saw after Apple Music acquired Beats Audio. The company bought Beats Audio and Beats audio device business in 2014 which increased the number of subscribers for Beats Music from a little less than one million to 40 million paying users. The sales from the segment grew by 23 percent to $30 billion in 2017 fiscal year.
Considering that Apple has aimed at $50 billion in services revenue by the year 2021, Apple is in need of a good boost from a new revenue stream to hit that target.
Gene Munster, Apple analyst and co-founder of Loup Ventures told Bloomberg that it will be difficult for Apple to gain more subscribers if it launches a similar business model to that of Texture. He added that if Apple changes the subscription charges by few dollars (currently $9.99), the company could boost the subscription numbers but still "it won't move the needle for Apple's subscription business".
The upcoming news service will join Apple's existing subscription-based services that include iCloud storage and Apple Music.
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