Apple is said to be planning on reducing its cut of the action from subscription video services, reducing its customary 30% wetting of the beak down to just 15%. The move is said to be to placate partners whose movies and TV shows are vital to the Cupertino firm’s video strategy.
The iPhone maker intends to reduce the slice of revenue it is paid by subscription video streaming apps from the current 30 percent to 15 percent, according to people familiar with the plans. Other non-video apps see their bill from Apple halved from 30 percent only after a customer has completed a year’s subscription. Apple spokesman Tom Neumayr declined to comment.
Apple’s 30% cut of the subscription action has long been a point of contention between the company and developers and content providers. Some have gone as far as to claim the iPhone maker’s cut of the action makes the firm guilty of anti-competitive behavior.
The company isn’t reducing their cut of the action out of the good of its corporate heart, no sir. There are some strings that come along with the cut. To be eligible for the reduced fees, developers must integrate their video services with the company’s new “TV” app, expected to debut on the Apple TV and iOS device sometime next month.
Apple’s new app collects movies, TV shows, and other video content from multiple apps into a single, easily searchable location. It is designed to be a one-stop shop for video content on Apple devices, offering Universal Search functions and content curation for new shows.
Bloomberg’s report suggest large content providers such as Netflix, Hulu Plus, and MLB.TV are already paying a reduced 15% cut of subscriptions to the Cupertino firm.