Publishers Chafe at Apple’s Terms for Subscription News Service
Apple plans to keep about 50% of subscription revenue from ‘Netflix for news’ service, likely won’t share customer data with publishers
Apple said iPhone revenue dropped 15% in the fiscal first quarter, causing a drop in both revenue and earnings amid a matured smartphone market and a slowdown in its service business. WSJ's Lee Hawkins reports. Photo by Justin Lane/EPA-EFE/Shutterstock
Apple Inc.’s plan to create a subscription service for news is running into resistance from major publishers over the tech giant’s proposed financial terms, according to people familiar with the situation, complicating an initiative that is part of the company’s efforts to offset slowing iPhone sales.
In its pitch to some news organizations, the Cupertino, Calif., company has said it would keep about half of the subscription revenue from the service, the people said. The service, described by industry executives as a “Netflix...