The Wall Street Journal: Publishers wary of Apple’s plans for subscription news app

Apple Inc.’s plan to create a subscription service for news is running into resistance from major publishers over the tech giant’s proposed financial terms, according to people familiar with the situation, complicating an initiative that is part of the company’s efforts to offset slowing iPhone sales.

In its pitch to some news organizations, the Cupertino, Calif., company has said it would keep about half of the subscription revenue from the service, the people said. The service, described by industry executives as a “Netflix for news,” would allow users to read an unlimited amount of content from participating publishers for a monthly fee. It is expected to launch later this year as a paid tier of the Apple News app, the people said.

The rest of the revenue would go into a pool that would be divided among publishers according to the amount of time users spend engaged with their articles, the people said. Representatives from Apple AAPL, +0.86%   have told publishers that the subscription service could be priced at about $10 a month, similar to Apple’s streaming music service, but the final price could change, some of the people said.

The New York Times and the Washington Post are among the major outlets that so far haven’t agreed to license their content to the service, in part because of concerns over the proposed terms, which haven’t been previously disclosed, according to the people familiar with the matter. The Wall Street Journal also has concerns, but its recent conversations with Apple have been productive, one of the people familiar with the matter said.

An expanded version of this report appears on WSJ.com.

Also popular on WSJ.com:

Amazon slashed prices at Whole Foods. Now they’re climbing back up.

U.S. jury convicts Mexican drug lord ‘El Chapo’ after three-month trial.

Filed in: Top News Tags: 

You might like:

This Nike ad showing a woman’s underarm hair is making some people very uncomfortable This Nike ad showing a woman’s underarm hair is making some people very uncomfortable
The Fed: Here’s what the market expects from the Fed’s policy review on inflation The Fed: Here’s what the market expects from the Fed’s policy review on inflation
Futures Movers: U.S. oil prices down a second session, but Brent climbs on supply uncertainty tied to Iran Futures Movers: U.S. oil prices down a second session, but Brent climbs on supply uncertainty tied to Iran
The Ratings Game: Tesla’s earnings were a ‘debacle,’ says longtime bull in scorching commentary The Ratings Game: Tesla’s earnings were a ‘debacle,’ says longtime bull in scorching commentary
Metals Stocks: Gold prices are on pace for a second straight gain as U.S. stocks slump Metals Stocks: Gold prices are on pace for a second straight gain as U.S. stocks slump
The Ratings Game: Altria stock smoked as cigarette shipments drop, Amazon readies for a big ad quarter The Ratings Game: Altria stock smoked as cigarette shipments drop, Amazon readies for a big ad quarter
Market Snapshot: Dow falls 250 points as 3M slashes guidance, announces job cuts Market Snapshot: Dow falls 250 points as 3M slashes guidance, announces job cuts
Capitol Report: As Biden announces candidacy, these are the Democrats who are running for president Capitol Report: As Biden announces candidacy, these are the Democrats who are running for president

Leave a Reply

Submit Comment
© 2019 Stock Investors News. All rights reserved. XHTML / CSS Valid.