Apple recently acquired long-running digital magazine service Texture, and it appears they are wasting no time integrating the platform into their service offerings. Bloomberg reports that Apple is planning to launch a subscription news service powered by some of the work done at Texture. Apple acquired Texture just last month and apparently has already let twenty employees go as they work to assimilate the company.
Texture offers a digital subscription to over 200 magazines for $9.99/month. The remaining Texture employees will now work at the Apple News division as the Cupertino tech behemoth hopes to disrupt another industry with a subscription service. Apple's $3 billion Beats acquisition has really beared fruit in the form of huge Apple Music subscriber growth and the company's services revenue segment passed $30 billion in fiscal 2017.
Apple's fastest growing revenue segment is now their services division so it makes sense for them to attempt to grab some of the low-hanging fruit in the form of news subscriptions. The company sells iCloud storage and Apple Music subscriptions, but also rakes in services revenue from iTunes, App Store, and Apple Pay transactions. Apple News would be just one more source of revenue for the company's fastest growing business segment.
While Apple did let twenty Texture employees go shortly after the acquisition, close to eighty people remain and they will now be focused on growing Apple News with the knowledge and technology they bring from their experience growing a digital magazine subscription service.
Is an Apple News subscription service something you would pay for? Let us know in the comments section. In case you missed it, check out our article about how Apple forgot about Dre with their recent HomePod launch. Apple's stock also carries a "buy rating" in our Game Trader stock ratings.