Will Apple revolutionize the media industry?
Horace C. White
Modern Tokyo Times
Apple’s news subscription service to reshape the global media industry
If the New York Times report is anything to go by, U.S. smartphone maker Apple is on the verge of launching its news subscription service before the end of this month. Already, Apple news app, which hit the App Store some years ago, has attracted some 90 million ardent readers.
Similarly, the Verge reported that despite the app being initially made available to iPhone and iPad users, the Apple news app is increasingly making its way into hearts of Mac users as a result of Apple’s update on MacOS Mojave. Going forward, the California-based smartphone company is looking to explore the possibility of launching a subscription package inside the news app on March 25.
Raking in Revenue via the News App
Indeed, all is now set for Apple to join the world’s leading paywalled news platforms. From The New York Times to Bloomberg, The Wall Street Journal to The Economist, these well-established media platforms encourage their readers to pay some stipends in a bid to enjoy their content. In October 2018, Apple acquired a service, Texture, which enables the iDevice maker to subscribe to The New York Times at $10 per month. Now, Apple is looking to offer the service similar to flick-streaming platform Netflix by allowing users to enjoy all its news services for just $9.99.
What does the subscription service mean for the media industry?
To kick off the subscription package, Apple’s move to reach deals with The New York Times and The Wall Street Journal hit the buffers. Bloomberg reports that the platforms turned down the offer, citing unsatisfactory terms.
For the paywalled publishers that have been in the media industry for decades, Apple’s foray into this market will slash their revenues. In comparison, Apple’s subscription service will be way better than those of existing publishers. Looking at the summary of Apple’s service, users can access a wide spectrum of publishers. For instance, they can read over 200 magazines, including Vanity, Forbes, Bloomberg Businessweek, GQ, and many others. On the other hand, the existing publishers just offer their services at a monthly subscription rate.
In its publication, The New York Times queried why Apple is branching out into news subscription as a way of ramping up its revenue. It also wondered what would become of the The New York Times’ news subscription service once Apple finally joins the fray.
Apple Inc. in the smartphone industry
For nearly fifty years of its existence, Apple Inc. has experienced lots of ups and downs. It would be recalled that Apple once hit the headlines as the most valuable company in the world. According to estimates, Apple was valued at $1 trillion in Q4 2018.
Obviously, this shows that Apple CEO Tim Cook and his team have not been resting on their laurels since co-founder and late CEO Steve Jobs passed away. After his death, in October 2011, critics argued that the 56-year-old American business mogul would take much of Apple’s creativity, innovation and uniqueness to the grave. However, the all-time rise of Apple’s valuation – less than a decade after Jobs passing – is a strong indication that the smartphone behemoth is on the right track, and poised to revolutionize the media industry after entering the market.
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