Apple acquired the "Netflix of magazines" last month, and is now planning to create its own premium news service. Bloomberg reports that Apple's acquisition of Texture will see the service, which offers more than 200 magazines for $ 9.99 a month, combined into the Apple news team. It is reported that a new Apple News application will be launched within the next year and will offer a subscription with a percentage of the revenue shared to the publishers.
Apple has tried a similar approach before. Apple eliminated its Newsstand application in favor of Apple News, and the original application used to offer digital versions of newspapers and magazines. Apple also previously partnered with News Corporation to create The Daily, an iPad-only news publication. News Corp finally closed The Daily after almost two years, blaming the lack of audience to create a sustainable business model.
Apple's latest attempt seems to be pointing to a subscription offer for several magazines, as well as the company's music streaming service. The effort will depend on the appetite for payment from quality news sources, something that publishers have been trying with their own "direct payment" options. Bloomberg reports that publishers will be offered a portion of the subscription revenue, but it is unclear how much Apple will be willing to share. Apple currently takes a revenue cut of 15 percent of application subscriptions in the company's application store, and a 30 percent share is needed for regular application sales.