Apple is prepping the launch of a new subscription-based offering for its Apple News service, as it looks to integrate the platform with the recent acquisition of magazine app Texture.
Bloomberg reported, citing sources, the company is integrating Texture’s technology and its employees into its Apple News team, which is in the process of building out a premium subscription service.
Apple agreed in March to acquire Next Issue Media, the company behind Texture, which gives users unlimited access to a portfolio of more than 200 magazine titles for a fee of $9.99 a month.
The vendor is looking to combine the service with an upgraded, fee-based, Apple News app which is expected to launch in 2019. The move is part of a broader push by Apple to generate more revenue from its online content and services segment.
A part of the revenue it generates through the new subscription model will also be paid to magazine publishers taking part in the programme.
Texture’s model was based on alerting subscribers about stories which they are interested from a range of titles in via push notifications and email updates: Apple is reportedly set to go down a similar path.
Such an approach will differ the offering from its old Newsstand app, which offered users access to a range of newspapers and magazines which were provided on an individual subscription basis.
The company will hope it can replicate the success of its Apple Music offering, which also runs on a subscription model and now has 40 million users. The company is targeting services revenue of around $50 billion by 2021, after hitting $30 billion from the segment in 2017.
Apple currently sells subscriptions for both iCloud storage and Apple Music, while it also generates a cut of revenue from subscriptions to third party apps on its App Store.