New York – Apple’s forthcoming subscription news service may not be a cash cow for participating media organizations.
The Silicon Valley giant has reportedly informed publishers that it will take 50% of the revenue from the service. A spokesperson for Apple declined to comment.
News of Apple’s plans was reported Tuesday by both the Wall Street Journal and AdAge.
According to AdAge, “Apple plans to take half of the proceeds from $10 monthly subscriptions to the magazine service, leaving publishers to split the rest based on how many people read their stories.”
The service, which is expected to launch this spring, will be a byproduct of Texture, the digital magazine service Apple acquired last year.
Texture was joint venture founded nearly a decade ago by publishers such as Hearst, Meredith and Conde Nast; spokespeople for those companies did not respond to a request for comment.
Bloomberg reported in December that Apple will make Texture a premium product within Apple News, the company’s mobile news aggregation app that is pre-installed on iPhones.
Apple’s iPhone business is in decline, but its subscription services such as the app store, Apple Music and Apple Care are making up some of the difference. Revenue for these services rose 19% to a record $10.9 billion, according to the latest earnings report.