AppleNews

Apple’s plan for subscription-based news service faces resistance from publishers

Krishna Mali
By: Krishna Mali

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Several publications are resisting Apple Inc’s plans to keep about half of the revenue from its upcoming news subscription service, the Wall Street Journal reported on Tuesday, citing the iPhone maker’s pitch to some news organizations.

Apple representatives have told publishers that the subscription service could be priced at about $10 a month, but the final price could change, WSJ said.

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The iPhone maker charges a 30 percent transaction fee to software developers who sell apps through iTunes and its App Store.

Apple declined to comment on the report.

The company has sharpened its focus on its services business to cushion any blows from a slowing smartphone market. In the quarter ended December, services gross margin hit 63 percent, up from 58.3 percent a year ago.

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Krishna Mali
Krishna Mali
Founder & Group Editor of TechGraph.
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