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Publishers Are Upset With Apple Over The News+ App, And With a Good Reason

News+ app

In March last year, Apple purchased Texture, the company whose app was named “Netflix of magazines“. For $9.99 a month, users can read in a library of 200 magazines. The following month, Apple’s plans had already been leaked. It was said that the company would combine Texture with its News app to create a subscription service. And last March, with a big fanfare, Apple introduced its News+ subscription service. For $9.99 a month (which seems to be a preferred price point for many subscription services), subscribers can browse online through more than 300 publications.

While the free Apple News app is still the number one in its class with more than 5 billion articles reviewed each month, the News+ service offers iOS users access to premium sites, some of which normally pay much more from to read. This includes articles like the Wall Street Journal and the Los Angeles Times, although only some of the magazine’s content is available. Looks good, but publishers aren’t exactly excited about the results they’re seeing in News+. Apparently, Apple had shown projections to publishers who showed that they would receive 10 times the revenue during the first year of Apple News+ compared to what they were getting with Texture; This was not the case. A magazine editor says he receives an income that is one-twentieth of what they actually said.

Publishers are also not happy with the design of the app. Because publishers receive their payments based on the number of time readers spend reading a particular publication, they want Apple to find a way to encourage subscribers to read more of their content. And surprisingly, despite Apple’s history of being very proud of the hardware and software features, some publishers believe that the Apple News+ app is “unfinished”.

Apple Expects To Reach $50 Billion In Service Revenues For Next Year

news+ app

The report says Apple has told publishers that it is working to make the app more intuitive for subscribers trying to solve the problems they are raising. Eddy Cue, who holds the title of senior vice president of software and Internet services at Apple, says there are hundreds of people working to improve the experience for both publishers and users.

Apple News+ is one of the many subscriptions offers that Apple is sending to its active users. A few years ago, the company made a good business decision to double the revenue generated by its $25 billion service unit in 2016 to $50 billion by 2020. The idea is that if iPhone sales decline (what who have since then reached its peak in 2015), the large number of active users can contribute a little money through the monthly payment of subscriptions. The Services unit is Apple’s second division and is the most profitable including News +, Apple TV +, Apple Arcade (starting this fall), Apple Music, AppleCare, App Store, iCloud, and Apple Pay. For the company’s second fiscal quarter (which included January to March), it received $11.45 billion in service revenues while refining the $50 billion goals it hopes to reach next year.

Apple News+ is currently only available in the US and Canada and should be launched in the UK later this year. The whole idea of ​​paying for news can be strange for many Internet users. After all, there are still some great news services that do not hide behind a wall of payments like Associated Press and Reuters, to name some. But Apple expects that there will be enough iOS users looking for a more analytical view of events that will pay the monthly fee to see them in Apple News+.

(Via: 9to5Mac)

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