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Apple wants 50% of revenues on planned paid Apple News tier, publishers not happy

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Apple is reportedly looking at adding a paid tier to its Apple News app, but it looks like many news outlets don't approve of the plan at the moment. The news subscription service would give users access to all content for a monthly fee of around $10, as per reports, but this could change later on.

WSJ is reporting that several major outlets, including The New York Times and The Washington Post, have concerns over the proposed terms of the agreement. Sources familiar with the matter say talks are still ongoing and that these publishers still have time to get on board before launch. WSJ for its part said it also has concerns but recent discussions have been productive.

There are two major sticking points for publishers over Apple’s plans; the first issue is over the pricing structure, and the second issue is the sharing of customer details. According to reports, Apple wants to keep about half of all the subscription revenues for itself, it will then put the other half of the money in a pool which would be divided among publishers based on the amount of time users spend engaging with their articles.

The second issue being raised by some publishers concerns the sharing of customer data. Apple is unlikely to give publishers access to customer information such as credit card information or email addresses. Publishers believe having this data is essential in order to build their own databases and market other products.

Publishers have increasingly turned to subscription models in order to boost their funding due to the rise in free, digital content online. If publishers sign up with Apple, we might see publisher revenues rise again.

Source: Wall Street Journal via Reuters

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