AAPL Apple Inc

By Tripp Mickle 

Apple Inc. said it will acquire Next Issue Media LLC and its magazine-subscription service Texture, a product developed by top magazine companies that bundles together some 200 subscriptions into one monthly service.

The acquisition comes as Apple looks to beef up its services business, which includes its music-streaming service and its mobile-payments service.

Apple has set a goal of increasing total revenue from services to more than $40 billion by 2020. The company generated nearly $30 billion in services revenue in its fiscal year ended in September.

Apple typically takes a 15% cut of subscription services from publishers and content providers, including Netflix Inc. and HBO, if those subscriptions are purchased through the App Store.

Terms of the deal weren't disclosed. Next Issue Media and Texture are owned by Condé Nast, Meredith Corp., Hearst Corp., Rogers Communications Inc. and KKR & Co.

Texture, which offers a monthly, $10 subscription to magazines such as Vanity Fair and National Geographic, fits into Apple's effort to bring news and information to iPhone and iPad users. The company launched Apple News in 2015 and has been aggregating and providing news stories to iPhone users since then.

"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 who oversees the services business.

Write to Tripp Mickle at Tripp.Mickle@wsj.com

(END) Dow Jones Newswires

March 12, 2018 13:34 ET (17:34 GMT)

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