Apple Inc. plans to integrate recently acquired magazine app Texture into Apple News and debut its own premium subscription offering, according to people familiar with the matter.
The move is part of a broader push by the iPhone maker to generate more revenue from online content and services.
200 magazines at $9.99 per month
The Cupertino, California company agreed last month to buy Texture, which lets users subscribe to more than 200 magazines for $9.99 a month.
Apple cut about 20 Texture staff soon after, according to one of the people.
The world's largest technology company is integrating Texture technology and the remaining employees into its Apple News team, which is building the premium service.
An upgraded Apple News app with the subscription offering is expected to launch within the next year, and a slice of the subscription revenue will go to magazine publishers that are part of the program, the people said.
They asked not to be identified discussing private plans. Apple declined to comment.
Currently, Apple sells subscriptions for iCloud storage and Apple Music.
It also gets a cut of subscriptions sold by third-party apps on the App Store.
The company could also choose to turn its original video content efforts into its own Netflix-like video subscription service.
Apple also gets services revenue from Apple Pay transactions, App Store downloads, iTunes music, movie, and TV show purchases, and digital book downloads.
