Apple looking to launch a 'Netflix for news' after its Texture acquisition

By Gadjo Cardenas Sevilla

Hoping to replicate the success of Apple Music, Apple is said to be planning to integrate its News app into its recently acquired Texture magazine subscription service which will essentially be a Netflix-like subscription service for news and features.

Apple purchased Texture, which was partly owned by Rogers in Canada, in March. Company spokespersons said that the Texture service, which gives access to dozens of publications for a monthly fee, would be 'status quo,' meaning existing subcscribers on iPad, Windows and Android platforms would be able to read their magazines without disruption.

A report from Bloomberg's Mark Gurman today stated that Texture isn't just an idle acquisition. The company reportedly fired 20 people from Texture as it plans to merge Texture with Apple News. Canadians may have not heard of Apple News because the app, which is sort of like Flipboard and aggregates news into a magazine interface, is not widely available outside the US.

Personally, I've used Texture for years and love how that app has made print magazines exist in the digital space. Not only can you automatically get new issues downloaded regularly, there's a curation aspect to the articles, themes, and topics, which is valuable. There is nothing wrong with Texture's model, it is also a cross platform application, which might no longer be the case once Apple makes it its own.

This acquire and absorb strategy was used by Apple when it bought Beats Audio  as well as the Beats Music service which it transmogrified into Apple Music, now the second largest source of streaming audio globally with 40 million paid subscribers.

The big difference between Beats and Texture is that with Beats Apple already had substantial clout and understanding of the music business, thanks to years of leading the charge with iTunes, the biggest music seller. Apple has rapport with artists and presumably pays them fair royalties.

Magazines and news sources are a different beast altogether. The Bloomberg report states a 'Premium' service, which connotes it will be expensive. Texture was wonderful because it was available in tiers, so everyone could afford the basic subscription or opt for more premium subscription that had higher end publications.

It will be intriguing to see what emerges from this Apple News and Texture merger and if it will be a welcome service that's fair, easily accessible and cross platform for the greater benefit of all users.

Source: Bloomberg