Apple’s “Netflix for news” subscription service hasn’t launched yet, but a new report from The Wall Street Journal suggests the tech company is looking to take a 50 percent cut of revenue from the new service. The paid Apple News service is said to work a lot like Netflix or Hulu does for TV shows — users would pay a single monthly price to Apple and get access to a wide range of paid news sources and magazines all bundled together. But Apple is apparently running into issues with publishers over how much of that money (rumored to be $10 per month per subscriber) will make its way back to the creators of the content. According to the WSJ, Apple is currently proposing deals in which it would keep half that revenue for itself, while the other half would be divvied up based on how much time users spend reading each publisher’s content. The model is similar in ways to how Spotify has calculated artist payouts in the past based on overall listening times. Notably, the WSJ claims the proposed price split means major news sites like The New York Times and Washington Post have yet to agree to license content for the service. (For its part, the WSJ also says its own talks with Apple are going well.) Publishers are also concerned they wouldn’t get access to subscriber data with Apple’s news service, depriving companies of the email and credit card information that’s key to marketing efforts, leading to… [Read full story]
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