You want Apple to increase its earnings from the service sector, through the launch of the subscription service in its application of Apple News which is expected to be announced this service during the event, the annual March 25 next.
Here we’ll try to read between the lines, and how to try Apple’s re-definition of the news sector on the internet, then why do you want to enter this sector? Why should you as a user or publisher of the digital to care?
The beginning there are five facts you should know :
- In the first quarter of 2019 revenues of the service sector in the Apple increased by 28.2%.
- Subscription revenue in the application of news will be from the profits of this sector.
- Apple acquired a while ago on the application of the digital Texture.
- But the digital media sector suffers from poor returns.!
- There are job cuts in the media at large.!!
After knowing the facts above, I think you have a perception of where the market is heading. Apple wants access to the equivalent of the said returns however you want to share the profits with the means of the major media, there is no doubt that something like this might be incapable of understanding.
Let me tell you too; the Apple is experiencing some trouble, after more than a decade of growth and prosperity of sales of the iPhone, showed data for the first quarter of 2019 decline, where revenues totaled sales of the iPhone 51.98 million, compared with $ 61.6 million for the same period of the previous year fell by 15.6 %.
On the other side grew the revenue of the service sector approximately $ 10.9 million, a growth of 28.2%. Will Apple maximize the income from this sector through the service of movies and series and then through the launch of the service subscription in the application of its news.
The story began since the early pafter the acquisition of Apple on the application of the digital Texture, entered into negotiations with the newspapers “New York Times” and”Wall Street Journal” and”Washington Post” to make their content paid available via the app, they encountered reluctance.
According to leaks will be the value of the subscription of $ 10 will be imposed Apple TV and 50% to publishers. Which is slightly higher than that you get the Apple TV from the application developers which amounts to 30%.
Facing all of these competitors in one service, it seems that it is something that is attractive to the service providers, so the idea of sharing the proceeds of the subscription with Apple considered crazy.!
But Apple can use the paper number and its organs the king is optional to active, to market the service and ensure partner publishers more. It has “more than 1.4 million“, even with the attainment of a rate of participation of Apple’s 50% of the income will include the remaining window of the new sale and for the media, in order to achieve more returns in this sector, which is suffering from crises.
Crises of this sector start from the way to achieve the revenue, there are three sources of income depend on the media first advertising which is monopolized by Google and Facebook, then there is revenue from the sale of the content, and finally there is a system of contributions paid which depend on the means of major media like the New York Times and the Wall Street Journal and others want Apple to re-organize this sector or control, you name it!
The crisis of poor returns the speed of the emergence of cases of mass layoffs in the companies, major media, where the company announced The been Buzzfeed about reducing the number of its employees 15%, the company said Verizon it will cut back the number of staff in the Information Unit by 7%. Which include HuffPost, Yahoo, AOL combined, this means a loss of more than 1,000 jobs.
Not invisible on the followers that Apple has by the change of the music sector online and re-definition, on 28 April 2003 back Steve Jobs on stage to introduce us from Store iTunes, then tell us in the declaration that the services available at the time of the “Napster Napster,” “Kazaa” is bad and we must quit hacking. Then stop Eddie Q who was responsible for the App Store that Apple will sell a million songs in six months, but the store sold a million copies in six days. Commented jobs: “will history remembers this as a turning point in music industry”
Apple used to the era after the iPhone, maybe in the future you are selling the iPhone at a very low price or at cost, while the total returns come from cottonsales, another on her head the service sector.
Locally, the Saudi Research and Marketing Group, the largest media group in the Middle East where they have more than a dozen printed and a, Bareto invest in digital content through partnerships with the media groups global.
Where it announced its partnership with Group Bloomberg “Bloomberg” and the launch of “Bloomberg the company“. Then the launch of the Arabic version of the newspaper The Independent Arabic in partnership with the British newspaper “The Independent”.
With regard to the local content has completed its acquisition of a 51% stake of the company numbers, in A announced that its subsidiary, also announced the launch of the store, “the” e-mail.
In the publishing and distribution the company a national distribution company which was owned to the several news organizations, Bto launch the book shop Xbox stack supported on its fleet of huge shipping and distribution, which includes 1400 car and truck covering all the cities of the kingdom.
However, those challenges are not enough and will not save the local press, whether paper or digital.
From here to next March. we’ll see how will Apple change the way we follow news. We’ll wait.
Author: Travel Clinic, interested in the field of technical and economic.