Apple just revealed that its holding an event on 25th of March. The tagline reads “It’s show time.” which has been linked to the company releasing its video streaming service. But the company could also release its news subscription service which has turned into a controversial topic even before its release.
Few weeks ago it was reported that, Apple held conversations with news publishing agencies regarding its news service. During which, the company reportedly asked the agencies for a hefty 50% of the revenue.
A lot of people pointed out that, Apple does not ask for the same amount of cut from app developers when they publish their apps on the App Store. But a lot of people were quick to note that, a paid news service from Apple could actually increase the readership. Adding that, the reach Apple has with its services justifies the cut the company is asking for.
NETFLIX FOR NEWS
Apple successfully penetrated the music industry with its music streaming service. It being a company with almost unlimited resources, it putting a ding in an industry is not a difficult task. Earlier this year, Apple reported that its music services had around 50 million subscribers; a big milestone for the company.
If Apple could pull a similar stunt with its news service, it could revolutionize journalism. At present, major news publishing agencies are shifting to paid method of generating revenue. However, for readers it’s daunting to pay each news site a separate fee.
For now we know that, Apple’s news service aims to have all news sites on its platform. It will charge the readers a fee of $10 from which it will pay the news agencies according to the number of reads.
For more details on Apple’s Netflix style news service, join us on 25th of March when the company could release the service.