Published: Wed, March 14, 2018
Science | By Joan Schultz

Apple acquiring Texture, the 'Netflix of magazines'

Apple acquiring Texture, the 'Netflix of magazines'

The interview, which was largely about media curation, took place shortly after the company announced its plans to acquire the digital magazine subscription service Texture. Apple previously awarded the app an App Store reward back in 2016. The company's push into aggregated content with its Apple News service has unsettled publishers which prefer to connect with consumers through first-part channels. Some publishers reported losing online traffic from Facebook after the social media network recently refocused on content from friends and family. Before it rebranded in 2015, it was a joint venture by Condé Nast, Hearst, Meredith, News Corp., Rogers Communications, and Time Inc., which founded the app and Next Issue Media as an effort to monetize digital media, the Verge reports.

The Texture magazine app features Vanity Fair, the New Yorker, Elle and other titles. In 2014, private-equity firm KKR invested $50 million in the company. The app may also mark a revival of Apple's abandoned "Newsstand" product, a marketplace for newspaper and magazine apps. It replaced that with the more comprehensive Apple News service a couple of years ago.

The announcement solidifies the company's ranking as the No. 2 streaming service behind Spotify, which has 71 million subscribers and 159 million active users, according to its filing last month to become a publicly traded company.

Another source familiar with the matter said Apple had to renegotiate Texture's content deals because those deals were both with the magazine publishers that owned the startup as well as some publishers with no ownership stake.

"We are committed to quality journalism from trusted sources and allowing magazines to keep producing beautifully designed and engaging stories for users", said Eddy Cue, Apple's senior vice president of internet software and services.

Apple didn't disclose how much it paid for Texture, which had raised at least $90 million since it was founded almost a decade ago as Next Issue. In January, it bought BuddyBuild, a Canada-based app development service.

Like this: