Rumor has it that Apple is trying to get three of the largest US-based newspapers to set up a subscription service, according to Recode. The New York Times, The Wall Street Journal and the Washington Post have all been talking to Apple throughout the summer to set up the subscription service within Texture.
Texture is a mobile app that Apple acquired, which is often called the “Netflix of magazines.” Texture offers access to a number of popular magazines for a low price of $10 per month. Prior to Apple’s acquisition, Texture paid its publisher partners based on usage of their magazines in proportion to the revenue generated from its subscribers.
Apple’s media unit head Eddy Cue is leading the discussions with the newspapers to join the program. It is unknown whether the $10 per month price for Texture would include access to the newspapers or if it will be made available as an add-on price.
And Apple has been aggressively making content and subscription deals in the last few years. For example, Apple has earmarked at least $1 billion for a line of TV shows that are expected to air next year. Recode’s sources said that Apple wants to bundle a number of services for one larger subscription price, which would include music, videos, and news.
One of the biggest reasons why it will be tricky for Apple to create a value proposition that convinces the newspapers companies to join the product is that each of those businesses have their own independent subscription services. The digital subscription price is $10 per month for the Washington Post, $15 per month for The New York Times, and $37 per month for The Wall Street Journal.