Apple to Host an Event on March 25 for Upcoming Subscription Services

Apple Event March 25

According to a report in The Wall Street Journal, Apple has been in talks with publishers about a subscription news service that would be a new paid tier of its existing Apple News app. According to the website, Apple will be announcing all three products at the aforementioned date, though it should be noted that the technology giant was reported on several occasions to unveil the AirPods 2 during the month of March.

If reports are accurate, then Apple is asking publishers for 50% of the revenue cut for its planned News subscription service.

Given this sort of precedent, it's understandable why many publishers may have an issue with handing over half their revenue to Apple in exchange for a negligible bump in overall income.

Apple doesn't typically hold more than one spring media event, though it could this year. CNBC earlier reported Apple was targeting an April or May launch for its service. The service could be around $10 per month, similar to Apple Music, but the cost hasn't been finalized yet.

"Sources described the event as subscription services focused, but declined to say anything about Apple's standalone video streaming service which is also rumored to debut in 2019". We've appreciated Apple's thoughtfulness and leadership on a number publisher concerns over the previous year.

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The launch would be Apple's latest push to grow its services revenue with a goal of hitting $50 billion (R687 billion) by 2020.

Of course, Apple hasn't confirmed any details about an upcoming event, or even the existence of a paid-for news service. The New York Times and the Washington Post are said to be among the publishers that are not happy with Apple's terms.

In addition to asking for a revenue cut that is way higher than what App Store publishers must pay, Apple is also asking for select publishers to commit to using the news platform for a minimum of one year.

Given content licensing agreements, particularly in Canada, it's likely that add-on services will be offered through Apple's platform on a regional basis. Apple, for its part, has not commented on the claims.

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