The New York Times will launch a new business producing digital products, including iPad and iPhone applications, for other publishers.

Press Engine will be launched in the fourth quarter of 2010, according to a release from the US news organisation.

Telegraph Media Group is one of the first UK clients signed up to the new service and US customers include the Dallas Morning News and the Providence Journal.

"The pace of change in digital technology means that media companies will increasingly be looking at ways of collaborating in order to create world-class consumer experiences. The New York Times has a global reputation for innovation and excellence in technology, and Press Engine offers an opportunity to harness that expertise to showcase Telegraph content on iPad and iPhone devices," says Edward Roussel, digital editor at Telegraph Media Group, in the release.

Telegraph Media Group relaunched its iPhone application in December adding new features for users to send in news tips.

Technology and design for iPhone and iPad applications will be a key part of the new service and standard features offered will include apps with: simple search; photo galleries, audio and video; options to save articles and read offline; and standard advertising units for each device.

Publisher customers will control and own any advertising and subscription revenue from their applications. The New York Times will make money from a one-time licence fee and monthly maintenance charges.

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