Apple is reportedly planning to launch a paid subscription news service, dubbed "Apple News Premium", within the next year, according to Mark Gurman at Bloomberg News. Texture now offers access to over 200 magazines for $9.99 per month; pricing for the new service is uncertain. During the acquisition, Bloomberg reports about 20 staff at Texture were cut by Apple so it looks like around 80 people were brought over from the service's ~100-person team.
Texture lets users subscribe to more than 200 magazines for United States dollars 9.99 a month.
Apple's services business is orders of magnitude smaller than its hardware business, but the company has had success with its Apple Music service, which now boasts almost 40 million subscribers. Apple has said that it is targeting annual service revenue of $50 billion by 2021. Sales from that segment grew 23 percent to $30 billion in the company's 2017 fiscal year. This will be a similar service as major companies will be offering content based on subscriptions.
Apple News is now a free app that delivers a personalized selection of content from a choice of publishers, with the ability to follow certain topics as well as subscribe to magazines and newspapers directly through news. Still, the initiative probably "won't move the needle for Apple's subscription business", Munster added. The company could also choose to turn its original video content efforts into its own Netflix-like video subscription service.
Apple's foray into digital journalism highlights the Cupertino tech giant's rapid expansion in its services segment, which includes Apple Music, iBooks and other services.