In our prior analysis of Apple’s event last month, we had posited the theory that the News Plus subscription service may not reel in ample recurring services revenue. After spending sufficient time with the app and perusing a variety of content, we understand and support Henry Casey’s position for cancellation. While the larger hit may come from the termination of Texture on Android as of May 28th, we fail to see how the magazine as a service has gained any traction.
The information presented through the various publications is available in advanced of release via traditional physical media. Publications such as PC World, Macworld, and other technology-focused magazines are effectively rehashing articles that have been available for weeks by visiting the associated website. Paying $10 per month for outdated information doesn’t represent a good value. The second perplexing issue relates to the iterations of magazines that are available for the current markets. Some magazines are either UK or EU versions. Although the content is in English, the value of ads for vendors and services that don’t operate within the U.S. and Canada is questionable.
The potential for unique and semi-interactive covers is interesting, the Apple faithful apparently don’t see the value in the proposition. The fact that only 200,000 trials were established during the first 48 hours highlights the logical outcomes that Apple News Plus will not move the needle from the services revenue perspective.