The plan to create a news subscription service appears to be a resistance from big publishers to the proposed giant tech terms of finance, according to people familiar with the situation complicating an initiative that is part of the company's efforts to offset iPhone's sales slowdown .
In the field of some news organizations, Cupertino, California, said it would keep about half of the subscription revenue from the service, people say. The service described by industry executives as "Netflix for News" will allow users to read unlimited content from participating publishers for a monthly fee. It is expected to be launched later this year as a paid level of the Apple News application, people say.
The rest of the proceeds will go to a pool that will be split between publishers depending on the time consumers spend engaging in their articles, people say. Apple representatives told publishers that the subscription service could be estimated at about $ 10 a month, similar to Apple's streaming service, but the final price may change, some say.
The New York Times and the Washington Post are among the largest editions that have so far not agreed to license their content, partly because of concerns about proposed conditions that people have not previously announced. familiar with the matter.
Conversations continue, and publisher transactions can still be reached.
The Wall Street Journal also has concerns, but his recent talks with Apple were productive, one of the people familiar with the matter said.
Another concern of some publishers is that they will probably not get access to subscriber data, including credit card information and email addresses, people say. Credit card information and email addresses are critical to information organizations that are looking to build their own customer databases and sell their products to readers.
Apple has suggested that at least some publishers have access to their content for at least a year, people who are familiar with the matter have said. Some publishers want longer engagement while others want flexibility to get out of partnership earlier.
Apple declined to comment.
The news service is part of Apple's efforts to find growth as iPhone sales. The technology giant reported last month its first one-year decline in revenue and decade-long profit for the three months ended in December after iPhone sales fell 15 percent to 51.98 billion dollars. Apple is trying to compensate for the decline in its core business with smartphone development with fast-growing business services that includes sales of store apps, streaming music subscriptions, and mobile payments.
Apple reported that iPhone revenue fell 15 percent in the first fiscal quarter, resulting in a decline in revenue and profits amid a smartphone market and a slowdown in business services. WSJ reports by Lee Hawkins. Photo by Justin Lane / EPA-EFE / Shutterstock
This year, the company plans to release several new services, including original TV programs and news service. It seeks to increase the number of paid subscriptions for its devices to 500 million by 2020 compared to 360 million now.
Apple discusses linking news coverage with the forthcoming bundle of original TV shows and iCloud, a service for storing photos, documents, etc., said one of the people familiar with the matter.
Apple is trying to attract a news industry that has been troubled by the influence of big technology companies on their business.
For a long time, as a major source of traffic for publishers, it changed its channel in ways that contributed to a sharp reduction in audience and revenue for some media companies.
Google faces the attention that allows readers to bypass the digital walls, the practice the search giant has softened afterwards.
Digital subscriptions increase the growth of major publishers, including Times, whose main monthly subscription costs $ 15, Post, which charges $ 10, and a Journal that charges $ 39. Some of these companies are skeptical about giving up too much control over Apple or destroying their existing subscriptions to register users with lower Apple revenue, according to people familiar with the issue.
But technology platforms are also a great opportunity. Apple News, a free service that installs on the iPhone and allows users to choose news on topics or publications, gives news organizations the impression of millions of high-quality and sophisticated news users. Apple's apple is that it will allow publishers to expand their subscription base.
The three sites are already distributing part of their articles in Apple News, to which readers have free access. Information organizations retain 100% of the revenue from the ads they sell for these articles, and retain 70% of the ad revenue they show along with their non-selling articles. Apple's planned subscription service will significantly expand access to these sites by adding content that is currently behind pay.
Users can also subscribe to news organizations through Apple News; Information organizations retain 70% of the subscription revenue for the first year and most of it afterwards.
Last year, Apple purchased Texture, an app that allows users to read unlimited subscription content of $ 9.99.
Bloomberg earlier reported that Texture will be integrated with Apple News as a premium product.