California based Apple Inc. has announced that it is trying to come up with a news subscription service. The smartphone brand is in partnership with The Wall Street Journal, for this all you can read news service. As per the report, Apple will combine all the news across media and then keep approximate half of the sales revenue.
This initiative is taken to generate more revenue through the news application of iPhones and tablets. The company is expecting to substitute the loss in hardware sales by increase in the news subscription revenue. This will also be a win- win situation for the media and news agencies as they are facing right revenue margins in present days.
Under this news subscription plan, subscribers are supposed to pay a monthly rental of $10. The news application will include news hidden behind the pay walls of the publishers. The revenue will be divided into equal halves. One half will be kept by Apple while the other half will be divided amongst the publishers. They will get the share depending on how much time readers have spent on their news. As observed, the revenue received by publishers will decrease in this new plan.
At present Wall Street gets approximately $20 for their digital subscriptions. Apple is also working on developing platform which will offer videos. Goldman Sachs has also supported Apple’s bundle initiatives as the iPhone sales have considerably reduced in recent months. This global investment bank has also informed that Apple is too dependent on Google services for revenue generation. The prime bundles like the news subscription will boost the revenue of the company. The service is more like the one the company has done with Netflix. CEO of the brand, Tim Cook informed the company will also bring in more such services in the upcoming months.