Apple wants to keep half of subscription revenue from its news service, report says

Major publishers aren't too happy about Apple's proposed financial terms for its subscription news service, according to a Tuesday report by The Wall Street Journal.

The tech giant told some news organizations it'd keep around half the subscription revenue from the rumored service, according to people familiar with the matter, the Journal said. The news service, which comes after Apple bought Texture last year, will reportedly offer unlimited access to magazines and news outlets for a $9.99 monthly fee. It'll be a premium product within Apple News, according to an earlier Bloomberg report. The service is rumored to launch later this year. 

The remaining revenue would be pooled and then divided among publishers depending on how much time users spend reading their stories, the people told the Journal. Major outlets including The New York Times and The Washington Post haven't agreed to license their content to Apple's news service partly because of concerns about the proposed terms, according to Tuesday's report. The Journal said it also has concerns but has had productive conversations with Apple, according to the report. 

The New York Times declined to comment. The Washington Post didn't immediately respond to a request for comment. 

Some publishers are also reportedly concerned they likely won't get access to subscriber data such as credit card information and email addresses, which can help news organizations build their customer databases. 

Apple declined to comment. 

First published Feb. 12 at 1:58 p.m. PT.
Update, 3:43 p.m.: Adds that The New York Times declined to comment.