Apple News+ subscribers reach 200,000 in first week

on Apr3
by | Comments Off on Apple News+ subscribers reach 200,000 in first week |

Tim Cook, chief executive officer of Apple Inc., speaks during an event at the Steve Jobs Theater in Cupertino, California, on Monday, March 25, 2019.

Source: Apple

Tim Cook, chief executive officer of Apple Inc., speaks during an event at the Steve Jobs Theater in Cupertino, California, on Monday, March 25, 2019.

Apple’s new subscription service for news and magazines, Apple News+, had over 200,000 people subscribe to a free one-month trial in the first 48 hours it was available, according to the New York Times.

It’s a critical data point to gauge consumer interest in Apple’s new subscription services. Apple News+ is the first of three monthly subscriptions that Apple hopes will transform its business from a hardware maker to a company that makes a substantial amount of money selling services to iPhone users.

While the number sounds impressive on the surface, the revenue generated at this scale is basically chump change for Apple, which makes most of its money on the iPhone. Plus, given the size of the iPhone user base, the initial wave of signups is still pretty small. On the other hand, The New York Times says that 200,000 user number is larger than Texture, the now-defunct app Apple News+ is based on, had during its entire existence.

Apple News+ costs $9.99 per month, or about $120 per year. Assuming that everyone who signed up for the free trial ends up subscribing for an entire year, those 200,000 subs would generate $24 million in sales for the service per year. But Apple would have to pay as much as 50 percent of that revenue back to the publishers that publish to Apple News, according to the New York Times.

Of course, there are a certain number of people who have or will cancel before the trial month ends. And Apple certainly has continued to add new trials after the first 48 hours it was available.

Apple Music, a $9.99-per-month streaming music subscription, grew to over 50 million subscriptions in three and a half years, according to a note distributed on Tuesday from UBS analyst Timothy Arcuri.



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