Industry

Apple may debut its own news subscription service within the next year

Apple may debut its own news subscription service within the next year

Your Apple News app may soon get a paid-subscription makeover, as Apple plans to integrate what's been called "the Netflix of magazines" to the now free service. The move is part of a broader push by the iPhone maker to generate more revenue from online content and services.

Last month, Apple announced it acquired the digital magazine distributor Texture as an entry to the journalism world. Apple cut about 20 Texture staff soon after, according to one of the people.

While Apple did let twenty Texture employees go shortly after the acquisition, close to eighty people remain and they will now be focused on growing Apple News with the knowledge and technology they bring from their experience growing a digital magazine subscription service. Now, Bloomberg believes that Apple is preparing to launch a new Apple News app over the next year or so.

Apple will ask the users to subscribe for this program by paying a sum of money on a monthly basis just like the previous Texture's subscription plan. With smartphone sales suffering a small decline in shipments past year, the first time that has happened, Apple is looking to expand its services revenue. The news subscription service would fall into Apple's services business, which has been an ever-growing part of the company's profile over the past few years. This will be a similar service as major companies will be offering content based on subscriptions. This doesn't necessarily mean that the new service is in trouble, but there's no question that a paid news service is a significantly riskier gamble that streaming music. Back in 2014, the company bought Beats and the Beats Music service that had less than a million subscribers at the time.

Apple needs successes like that to meet a bold target for its services division. Services revenue grew 23% to $30B in FY17, but execs have a goal of $50B by 2021.

Which makes sense when you think about it. Apple already makes a decent slice of cash by selling music and video on iTunes, alongside subscriptions for Apple Music, so it makes sense that it would want to expand that to other areas.