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Big Apple Content Event As Publishers Claim They Are Being “Screwed”

Apple is tipped to launch their controversial news and video subscription service on March 26th (AET) with Samsung tipped to be a key participant at the launch however some publishers are claiming that this is another way for Apple to “screw” partners.

The move comes despite several publishers claiming Apple is trying to “screw” publishers over margins like they do with their retail partners.

This week, a Wall Street Journal report detailed how Apple has faced pushback from publishers who have balked at the company’s request to take a 50 percent cut of revenue from the new service.

The Verge claimed that ‘Apple’s new deal for journalism should send publishers running and that ‘Nothing the iPhone can do is worth 50 percent of revenue”.
Another publisher said “They screwed the music industry now they want to screw publishers”.

Apple’s plan to create a subscription service has hit a brick wall with publishers with many uncertain how it will affect their direct sell subscription services.

In its pitch to some news organizations, Apple said it would keep about 50% of all revenue generated from the subscription revenue and this is based on simply hosting the content. They will make no contribution to the creation of the content.

It’s also not known whether Apple will sell advertising around the content and whether publishers will get a share of that revenue.

The service, described by industry executives as a “Netflix for news,” would allow users to read an unlimited amount of content from participating publishers for a monthly fee. It is expected to launch later this year as a paid tier of the Apple News app, the people said.

The event is tipped to take place at the Steve Jobs Theatre in Cupertino, California and is tipped to be a ‘subscription services focused’ event that will highlight that owners of a Samsung TV can now download Apple content directly from a built in App.

Some observers were expecting Apple to use the event to launch their much-rumoured update to the iPad Mini and a new pair of AirPods however insiders are now claiming that this will remain under wraps until at least September, when Apple hosts its big iPhone event.

What will be spruiked is a ‘Netflix-like’ video subscription product that Samsung announced at CES. The service will be available to both Android and iOS users.

The platform will feature original content from Apple, as well as channels with TV shows and movies from other content makers.

The streaming platform, which will rival popular services Netflix and Amazon Prime Video, is also set to be made available to other partners later including LG.

Since October 2017, the firm has bought a dozen projects – nine of which have been green-lit for a full series.

The shows are backed by a budget that is set to top $1 billion.

The programming will only be available on the new subscription channel and most likely bundled with the company’s existing Apple Music streaming service.

They include —

A psychological thriller by ‘The Sixth Sense’ director M. Night Shyamalan about a couple searching for a lost child.
A drama series about a network morning show starring Jennifer Aniston and Reese Witherspoon.
A series on the life of hip hop magnate Dr Dre called Vital Signs.
A drama series from ‘La Land’ director Damien Chazellae.
A revival of Steven Spielberg’s critically acclaimed 1985 anthology series ‘Amazing Stories’.
A space drama from Battlestar Galactica creator Ronald D. Moore.
The company is also working on projects with comedienne Kristen Wiig and Academy Award-winning actress Octavia Spencer.
According to sources close to the project, several of the projects have been delayed by Apple, which has pushed back on mature content.

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