Apple apparently has no problem registering publishers for its proposed 50-50 revenue sharing agreement for its news subscription service.
Despite the huge cut Apple requires, a new report has claimed that it has already signed many publishers for deals. "These companies are claiming that Apple is able to pull off an iTunes-style news industry rescue. As such, they think they are getting a smaller piece of a large business, rather than a big piece of a small one.
The report comes from Recode There is another recent report from the Wall Street Journal describing Apple's proposed terms, which immediately caused a riot among some pundits because Apple would demand a much higher percentage than the current revenue distribution that Apple offers developers.
Apple will host the service infrastructure, and "spend a lot of time and money promoting the new service."
Publishers, meanwhile, had to pay for the actual news-creating site Of things out of the cut, it would mean paying a journalist, running a newsroom, providing content, etc. On the plus side, publishers will keep 100 percent of their advertising revenue generating titles. 59006] But will there be newspapers too?
While Apple is likely to find many publications willing to jump on its new service, this may not be the case universally. Recode suggests that Apple can face problems in recruiting newspaper giants.
That's because they already offer their own subscription services. In most cases, these cost more per month than $ 10 Apple plans to charge for all tied magazine services.
Apple is rumored to pack its news subscription service into the Apple News app. With 90 million current Apple News users, this can provide many new readers and subscribers to magazines and other publications. Apple's current subscription model service, Apple Music, has around 50 million users.