As other tech giants like Facebook, Inc. FB and Twitter Inc TWTR are under regulatory scrutiny in how they disseminate and monitor information, Apple Inc. appears to be increasing its media power and reach.
Earlier in 2018, Apple Inc. bought a digital magazine distributor called Texture. Now it hopes to use the platform to team with U.S. newspapers to curate daily news.
The Cupertino, California-based company bought the company in March from Next Issue Media LLC, which gives users unlimited access to more than 200 magazines for one subscription fee.
Apple has discussed a partnership with the New York Times Co NYT and the Washington Post to use the app, the tech website Recode reported on Friday.
The initiative is taking shape as Apple is embracing a subscription model. The company is putting at least $1 billion into new television shows through Apple Worldwide Video.
Apple shares declined 1.3% $218.33 per share on Monday after President Donald Trump's announcement Friday that he is preparing a slate of $267 billion in new tariffs on Chinese goods.
Texture currently offers readers the ability to read as many stories as they want for a $10 monthly subscription, the same as the Washington Post charges a month. The New York Times sells its subscription for $15 a month, and the Wall Street Journal for $37.
Calls to Apple for comment were not immediately returned on Monday.
No matter how Apple structures the proposal, it may be a hard sell for any of the media outlets that already have their own subscription businesses and would be concerned about cannibalizing their own sales.
An additional worry for the papers, says one executive familiar with the conversations, is that being part of a bundle of publications is less attractive than a one-to-one relationship with subscribers. It also leaves open the possibility that Apple could drop them from the bundle down the road.
In addition to a giant user base--the company's net cash of $129 billion and ability to acquire digital subscribers are seen as positives for publications looking to expand their reach.
Apple currently takes a 15% revenue cut from app subscriptions in the company's App Store, and it takes a 30 percent slice for regular app sales.
The New York Times is currently the sixth most popular news app, according to the Apple App Store, while the Wall Street Journal is number 10.