Oh the drama…. It seems that Apple has been able to get publishers to sign up for their new Apple News subscription service after all. Recode is reporting that many publishers have signed up to be a part of the new subscription service, betting that Apple will be able to sign up “millions” to the service. The logic is simple:
And some publishers are happy to do it, because they think Apple will sign up many millions of people to the new service. And they’d rather have a smaller percentage of a bigger number than a bigger chunk of a smaller number.
In the words of a publishing executive who is optimistic about Apple’s plans: “It’s the absolute dollars paid out that matters, not the percentage.”
This report is in contrast to the report earlier this week from the Wall Street Journal who reported that Apple was having a hard time getting publishers on board, mostly because of the revenue share scheme. Apple is reportedly asking for 50% of the revenue while the other 50% is pooled and paid to publishers depending on the content consumed by consumers.
What would be interesting to know is who has signed up. It is likely smaller publishers that are on board, hoping that the Apple footprint will be big enough to help them see additional revenue. As the Recode article points out, this is unlikely to convince some big publishers, like WSJ, because they have their own digital path to subscribers.
Whatever the mix of publishers is or is not, all is likely to be revealed in just a few weeks. Apple is reportedly planning an event in March to announce the new Apple News subscription service as well as their video subscription service.