Apple announced that it will acquire Next Issue Media LLC and its digital magazine-subscription service Texture. Texture is commonly regarded as the “Netflix of magazines” as it provides users access to over 200 magazines with a monthly and annual subscription model. Some of the bundled magazines include People, Time, National Geographic, Sports Illustrated, and Rolling Stone for $9.99 per month, or $119.88 per year. The subscription gives unlimited access and is cheaper than paying for each magazine individually. Texture also allows users to import full issues of magazines and to read them in its original format. Apple will be acquiring Next Issue Media LLC in its entirely for an undisclosed amount, and the deal is excepted to close soon.
Apple’s acquisition comes at a time when media content and journalism is highly scrutinized. The term “fake news” has been used widely within the past year or so as companies, such as Facebook, have been criticized for delivering false or inaccurate information to users. Apple, having watched Facebook’s mistakes, believes that it can fight the spread of fake news and promote reliable information. Apple’s senior vice president Eddie Cue stated, “we are committed to quality journalism from trusted sources and allowing magazines to keep producing beautifully designed and engaging stories for users.” The recent acquisition of Shazam, a popular music-discovery app, also shows Apple’s devotion to providing more resources to content. It is suspected that Apple’s interest in Texture is also spurred to compete with competitors like Google, which also deal with subscription reading-services. Nonetheless, the integration of Texture into its products will be natural as Apple already has the News app. This integration will also allow Texture to reach out to more users as well as narrow the link between technology and journalism.
Apple’s acquisition of Texture is not only great for its product line but also great for their brand image. It is a strategic acquisition by branding itself as a trustworthy, reliable source and by increasing its presence in the reading-services area. Apple is projected to generate $40 billion in its service revenues by 2020. Companies like Facebook and Apple are evaluated by its market value. Market value consists of quantitative and qualitative values. Quantitative values include revenue generation and growth, credit worthiness, and cash holdings. Qualitative values include factors such as management style, quality of service, quality of employees, and the company’s accomplishments and mistakes. Two companies with similar quantitative figures may have different market values because of differing qualitative factors. That is why it is important for businesses to focus on all aspects such as production, quality assurance, and risk management.