Apple will reportedly launch a magazine subscription service based on its Texture acquisition, according to Bloomberg. The move was frankly expected in that Texture was a magazine subscription service when Apple acquired it, but Bloomberg’s Mark Gurman shed light on Apple’s specifics.
Bloomberg’s unnamed sources said Apple is rolling Texture’s platform into Apple News, where it will offer a one-fee-subscription for magazines. At this point, it’s unknown if Apple plans to include other periodicals like newspapers in its new service.
The Texture of Texture
When Apple acquired Texture, a US$9.99 subscription gave users access to some 200 magazines. That’s the same price as Apple Music, though Wall Street analyst Gene Munster said Apple would have a harder time at that price point when it comes to magazine.
“People pay for music, they pay for video, and most news services are ad-supported,” he told Bloomberg. “If Apple launches this as a similar business to Texture, they likely won’t have many subscribers.”
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Other tidbits from the report include the news that Apple laid off some 20 Texture employees after the acquisition. The rest of the roughly 100-person team was rolled into the Apple News team.
The company wants to boost services revenue—which includes iTunes, App Store, iBooks, Apple Music, and other services—to $50 billion by 2021, up from roughly $30 billion today.