Apple News to Let Publishers Offer Subscription Content Soon

Apple is working on a way for publishers to offer paid content through the Apple News app, says Reuters. Currently, the 100 or so

Subscription News: Apple News to Let Publishers Offer Subscription Content Soon

Source: Apple

Apple is working on a way for publishers to offer paid content through the Apple News app, says Reuters. Currently, the 100 or so publishers distributing news via the app share articles for free or share article excerpts, directing readers to the publishers’ websites to read more.

One of the key problems with the current set-up is that publishers aren’t getting useful customer data from Apple, limiting their ability to convert readers into subscribers, says Reuters. With nearly 40 million people reading Apple News, that’s a huge data gap for publishers.

Subscription News: Apple News to Let Publishers Offer Subscription Content Soon

Source: Apple

Another challenge for publishers who use Apple News is the lack of revenue generating opportunities. Currently, publishers can make money on ads they run within the app, but they cannot sell subscriptions or other products through the app. That may change too.

Motley Fool reports that publishers could soon have the ability to sell subscriptions within the app, as well as allow readers to view subscription-only content from within the News app. For example, a reader who subscribes to the Wall Street Journal or the New York Times may be able to access that content inside the News app without having to leave to read the content on the publishers’ website.

This creates an opportunity for publishers to share their paywalled content and to potentially attract more readers. Because the News app comes pre-installed on new iPhones and iPads, it is easier for a reader to access content through the app than it is for readers to download a publisher-specific app.

Insider Take:

The big question is why is Apple doing this and what will the company get out of it. The consensus is that publishers are frustrated with the lack of data they’re getting from Apple, so Apple is trying to appease them. If Apple does so, the number of publishers utilizing Apple News as a distribution outlet could grow.

We also anticipate that Apple would want some sort of compensation for creating a new revenue stream for publishers, whether it is from additional advertising revenue from new publishers, subscriptions purchased directly through the app, or revenue generated through a paywall for easy purchases inside the app.

Will these anticipated changes be enough to satisfy publishers? Will they resist sharing even more revenue with Apple? That depends on the quality of the data Apple shares with them, and the publishers’ ability to attract new readers and convert them into subscribers. The value of the data and an opportunity to get in front of a whole new audience may, indeed, be worth it.

 

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