Bloomberg reports show that in 2020 Apple wants to introduce an aggregation service modeled on Amazon Prime, which will allow the use of Apple Music, TV + and News + resources for a single fee. However, not everyone is happy about it.
As you don't know what's going on, it's of course about money. Very large money, which publishers – as they claim – will lose after changing the subscription model. The key to the puzzle is the system in which Apple settles with publishing houses. And this one is not too good for publishers right now.
Each subscriber pays $ 9.99 in a month. Half goes to Apple's cash register. The second one is divided among publishers according to the number of views generated by their titles. It does not matter, therefore, to what extent the letter is valued in paper version.
In addition, as CNBC mentions, publishers point to the relatively modest popularity of News +. As we read, the service has only 200 thousand. active subscribers. For reference, Apple Music has reportedly 60 million. Interestingly, they blame Apple's marketing department, which they think doesn't run enough campaigns.
Only sales revenue
The billing issue is not in the video or music sector. In the first case, Apple makes an appointment in advance for a certain amount, while in the latter, a fixed conversion of plays into earnings applies. Meanwhile, it is clear that a combined subscription must be cheaper than all three offers individually. The outbuildings are afraid of reducing the pool of money to be distributed.
They also point out that the current system is harmful to those who are struggling with higher costs, such as National Geographic. Nominally, the creators compensate for expenses with a higher price of the magazine, despite lower expenditure. In the News + system, this is impossible.
Of course, it's impossible to pass over the other side of the coin. Once Apple introduces a shared service for all content, it is likely that the number of views of individual titles in News + will increase significantly. I shoot that many people originally interested only in movies and music will look into the collection of magazines out of curiosity, treating it as nice gratis. In addition, the number of active subscribers should increase.
Summa summarum at the moment it is difficult to determine whether publishers will really be harmed. They think so, but the finale depends on too many variables to pass sentences now. And by the way, if publishers don't like the business model, they can take their Apple News + titles. Nobody forbids it — and somehow nobody wants to run away, they just sniff.