Apple Plans 50% Newspaper Revenue Grab

Apple Plans 50% Newspaper Revenue Grab
Apple wants to offer its customers access to newspaper content while keeping half of the subscription fees.

(CCM) — Apple is hoping to take a huge 50% cut of the revenues from its planned news subscription service —dubbed "Netflix for news" — Gizmodo is reporting.

Apple expects to charge subscribers $10 per month for unlimited access to a range of news content from participating newspapers which currently operate paywalls to protect their stories. After taking its 50% cut, the remaining subscription revenue would be divided up between publishers according to the amount of time users spend engaged with their content, the report says.

However a number of news outlets including the New York Times and the Washington Post are refusing to sign up to Apple's terms because they fear a possible loss of control over subscriber data, and because they believe Apple wants too great a revenue share.

There is a risk that existing subscribers simply switch to Apple's service without significant numbers of new readers accessing a given publisher's content, with the end result that those publishers end up giving up half of their subscription revenue to Apple with nothing to show for it.

The planned news service is part of Apple's strategy of building up its subscription services to maintain revenue growth in the face of falling sales of its iPhones and other electronic devices.

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