$130 billion cash balance seems to be not enough for Apple

Apple News is a service for Apple devices that delivers current news curated by editors with some level of personalization. It also allows you to subscribe to your favorite publications. Since it comes pre-installed on all Apple devices, it has become one of the most popular news services on the market. In fact, the service now has 85 million monthly active users and is the biggest news app in the US. BuzzFeed News yesterday reported that Apple is planning to hold a special event on March 25 at the Steve Jobs Theater on its Apple Park campus. This event will be focused on services and Apple will unveil a news subscription service that will allow users to access several different publications for a low monthly fee.

According to WSJ, news publishers are not so happy with this news subscription plan as Apple is demanding half the revenue. The plan would cost about $10 per month and Apple would keep half of the fees, and the other half of the fees would be divided among all the publishers based on how much time readers spent reading each publisher. While app and game developers are worrying about paying 30% cut of the revenue, Apple demanding 50% cut from news publishers is just insane. Apple is not a struggling company that relies on services revenue to stay afloat. In fact, Apple’s net cash balance was $130 billion at the end of last quarter. This demand from Apple clearly showcases its greedy nature. It will be interesting to see the news publications that accepted Apple’s absurd demands next month.

Source: WSJ

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