Apple is going to integrate recently acquired magazine app called Texture into their own Apple News portal. The move is part of a broader push by the iPhone maker to generate more revenue from online content and services. The company sells iCloud storage and Apple Music subscriptions, but also rakes in services revenue from iTunes, App Store, and Apple Pay transactions.
While we don't know precisely when this service will launch, we do know it'll land within the next year which indicates Apple may be gearing up to announce it at WWDC 2018 and launch it formally alongside iOS 12 this fall. After cutting 20 Texture employees immediately after the acquisition, Apple absorbed Texture's headcount into Apple News' team.
"We're excited Texture will join Apple, along with an impressive catalog of magazines from numerous world's leading publishers", said Apple executive Eddy Cue in a press release after Texture's acquisition on March 12.
Apple's Newsstand and News services offered magazine subscriptions on an individual basis, but the new News service would work more like the Apple Music streaming service.
Apple has been looking for revenue from services to complement its device sales for years, which is why the success of Apple Music has been such a boon for the company. Since then, the company has turned the service into Apple Music and now has over 40 million paid users on the platform.
This ties into expectations of an upgraded Apple News experience within the next year and Apple's lofty goal of increasing profits of its services division by 60% by 2021. The company now sells subscriptions for iCloud storage and Apple Music.
Job reductions at Texture aren't necessarily a sign that the news subscription effort is off to a slow start. The company bought Beats Music in 2014, shortly before debuting Apple Music with its $9.99-per-month paid tier. However, it's likely that the company will use its current Apple News relationships to its advantage, as well as those that Texture brought into the mix (titles available on Texture included People, Rolling Stone, National Geographic, Sports Illustrated, and others). Texture had about 100 staff.