CUPERTINO – Apple has decided to introduce its news subscription service for people all across the world. With the help of this all-you-can-read-news subscription or “Netflix for news” service, it would be able to raise its revenue. However, according to the report, this thing doesn’t hold well with the publishers who are not happy with Apple’s terms. The report says that Apple wants to take 50% revenue out of the total due to which the publishers such as Washington Post and The New York Times are not happy with the company.
The major publishers such as the Washington Post and The New York Times do not agree to license their content after reading the stated terms and conditions of Apple. In its terms, Apple has clearly mentioned that it would take 50% revenue of the service and the rest will be distributed among the publishers on the criteria of the time users spend to read articles of publishers. The price of the service has not been unveiled yet but it is expected to cost $10 per month.
50% revenue cut is not just the only issue which the publishers are having with Apple. In addition to this, publishers also want access to subscribers’ details which is crucial for them to plan their marketing strategy. However, Apple has refused to agree to give them information about the subscribers. Apart from this, Apple wants “some of its publishers” to attach with this service for a tenure of at least one year. This also does not seem to go hand-in-hand with the publishers as some of them want to commit with the service for a longer period of time while others are interested to end their partnership with the company early.
Apple has dived into the world of services to increase its revenue. According to reports, Apple has been selling its various products such as Apple TV 4K, AirPods, and HomePod at an affordable cost. It is making these products affordable so as to increase more access to its service. Putting a condition of taking 50% of revenue can also be attached to the decreasing sale of iPhones.