Apple wants to pocket 50% of news subscription service revenue, publishers already unhappy

Apple wants to pocket 50% of news subscription service revenue, publishers already unhappy
After acquiring the Texture magazine service last year, Apple is now planning to relaunch it as a premium version of Apple News this year. Following a report from the WSJ that the company is looking for a 50-50 revenue split with publishers, many were quick to express discontent with Apple's plans.

According to a new report from Recode, citing inside sources, Apple already has "many publishers" signed up under these terms. Furthermore, the report claims, publishers will still get to keep 100 percent of the generated ad revenue:

"Here’s the short answer, which I’ve cobbled together by talking to industry sources: Apple has already signed many publishers to deals where they’ll get 50 percent of the revenue Apple generates through subscriptions to its news service, which is currently called Texture and will be relaunched as a premium version of Apple News this spring.

After Apple bought Texture, it created new deals for magazine publishers, which gives them about half of the subscription revenue the service generates. Publishers also keep 100 percent of the ad revenue their titles generate."

The many negative responses were to a large extent prompted by Apple's App Store and Apple Music policies, which nets the company between 15 to 30 percent of revenue made from app sales and music streaming. However, according to Recode, the 50-50 split in Apple News is actually winning publishes over, as the platform also promises increased exposure.

Inside sources claim that Apple is planning to put quite a lot of money and effort into promoting its premium news service with the intent of generating "millions" of paid subscribers. This seems to keep smaller publishers optimistic about the endeavor, though larger ones may not be as satisfied by the split in revenue.

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17 Comments

1. JCASS889

Posts: 568; Member since: May 18, 2018

the greed is just too damn high

4. Phullofphil

Posts: 1824; Member since: Feb 10, 2009

There is nothing wrong with this you all just taking any opertunity to hate on apple. How much should they charge. There not getting any add revenue (entirely what google makes there money on). There is no such thing as greed when your talking a company or business. Make as much money as possible. That’s the American way. Everybody has a choice not to pay.

5. JCASS889

Posts: 568; Member since: May 18, 2018

yeah but when you have the most cash sitting around in the world, constant cutting corners to save profits, overpriced electronics, and skimping on fast chargers and charging 80$ for a 4$ battery, 200$ for 20$ headphones, its starts to show that apple is plain greedy, and only cares about profit margins and nothing else.

16. cncrim

Posts: 1589; Member since: Aug 15, 2011

The sad thing is Customers keep fall for it.

17. TheOracle1

Posts: 2340; Member since: May 04, 2015

Everything you say is true and I detest Apple and their practices too. But I don't see anything wrong with this one. Apple are opening up a market of 1 billion potential subscribers to them and 50% is reasonable in my opinion especially since the publishers retain all the advertising revenue.

8. CreeDiddy

Posts: 2255; Member since: Nov 04, 2011

Who's advertising on who's platform?

2. shiv179

Posts: 177; Member since: Aug 08, 2012

Watch the Apple fanboys defend this!

7. middlehead

Posts: 458; Member since: May 12, 2014

Scroll up, there's already one here.

3. almostdone

Posts: 449; Member since: Sep 25, 2012

I've been saying the rotten fruit company is evil and greedy as hell. I hope karma plays its part in the long run and they shrink to the size of their rotten core. lol

6. phonefanboy

Posts: 51; Member since: Oct 06, 2011

Well, so much for the Netflix killer that was so hyped by PhoneArena.

10. midan

Posts: 3020; Member since: Oct 09, 2017

News service netflix killer? Ok..

11. midan

Posts: 3020; Member since: Oct 09, 2017

Apple knows their value and when they have over billion users userbase they really don't need to settle for less. It's funny how haters are right away saying how greedy Apple is, do you guys even know anything about this subject? I can say that i have no idea how much is right, i have never been in same situation and neither have any of you. The visibility to be inside Apple News is huge. Who decide how much value that should have? Those who agree with what Apple offers clearly understand the value of the deal and how much visibility it means for them. I mean no-one force you to do deal with what Apple offers.

14. Vancetastic

Posts: 1614; Member since: May 17, 2017

In other words, “I heart Apple, no matter what!”

13. midan

Posts: 3020; Member since: Oct 09, 2017

"And some publishers are happy to do it, because they think Apple will sign up many millions of people to the new service. And they’d rather have a smaller percentage of a bigger number than a bigger chunk of a smaller number.” This!

15. kanagadeepan

Posts: 1272; Member since: Jan 24, 2012

Apple is so humble for NOT asking 99% of the revenue...

* Some comments have been hidden, because they don't meet the discussions rules.

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