Apple plans to hold a special event in March, which BuzzFeed News reported yesterday would unveil the company's grand plans for a news subscription service. The Cupertino-based iPhone maker's much anticipated video streaming service is another candidate that may mark its presence at the upcoming event as Apple had reportedly told the studios and TV networks recently to get ready for an April launch. However, the company has been butting heads with publishers over monetary details-Apple reportedly wants to keep 50 percent of subscription revenue from the service. As well, the report claims that publishers "likely" won't be given access to the data gathered on subscribers, which may make it more hard for them to market themselves to readers. In other words, that could include original Apple video content and news, along with Apple Music and iCloud storage tiers, all for one monthly fee. An announcement for the news service is expected in March, Buzzfeed reported. While we'll advise you to take this information with a pinch of salt, you should be reminded that Apple has held a number of events in March.
According to the report, both the New York Times and the Washington Post have rejected deals because the terms are too poor. Others have transitioned to locking all content behind a paywall, while others offer a certain amount of free content to all readers, requiring payment to access the rest. To this point, Netflix late a year ago removed the ability for new subscribers to sign up with iOS via in-app subscriptions, thus removing Apple's ability to earn 15% of all subscription fees in the process.
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Also, if the March 25 event turns out to be subscription-focused, it isn't clear when new hardware will make an appearance. The TV service is expected to launch globally, a person familiar with the matter said, an ambitious move to rival services from Netflix Inc and Amazon.com Inc's Prime Video.
We've asked Apple for comment and will update this story with any response. While app and game developers are worrying about paying 30% cut of the revenue, Apple demanding 50% cut from news publishers is just insane.