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Apple announced plans to purchase Texture last month.

Apple News is now a free app that delivers a personalized selection of content from a choice of publishers, with the ability to follow certain topics as well as subscribe to magazines and newspapers directly through news. 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. With smartphone sales suffering a small decline in shipments previous year, the first time that has happened, Apple is looking to expand its services revenue. Apple Music is now charging $9.99 a month and Texture is also offering the same subscription plan for the new users.

Apple plans to integrate Texture's platform - which catalogued more than 200 magazines and curated them based on the user's interests for a $9.99-a-month subscription - into Apple News to develop the news subscription platform, Bloomberg reported Tuesday. Beats Music, with its fewer than one million subscribers, shut down not long after Apple Music came out. The integration of Texture falls within the company's larger goal of generating more revenue from digital content and subscription services. Since then, the company has turned the service into Apple Music and now has over 40 million paid users on the platform.

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Apple needs successes like that to meet a bold target for its services division. If anything, Apple Music showed how important free trials can be.

Apple shares are up 0.5% to $176.72. Apple also gets a 15 percent cut from the subscription revenues that are being sold by third-party apps through the App Store, as pointed out by TechCrunch.

Job reductions at Texture aren't necessarily a sign that the news subscription effort is off to a slow start. Texture previously had about 100 staff members. The company also laid off 20 former Texture employees after its acquisition, according to Bloomberg.


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