Apple Reportedly Halves Cut On Subscriptions From Apple TV

It has been Apple’s longstanding policy to take a 30 percent cut on the content sold through its digital stores, this covers music, movies, TV shows and even subscription fees for magazines and other recurring charges. It would be perfectly normal to assume that this policy is enforced for subscriptions coming through the Apple TV as well, and it was, until now. As per a new report, to encourage more partners to bring their content to its set-top box, Apple halved its cut on subscriptions coming from the Apple TV.

The percentage of the cut doesn’t make a difference to users who will only pay what’s advertised, but the backend deals are worth millions to Apple and its content partners.

Re/code reports today that at least some of the major content partners on Apple TV are only paying a 15 percent cut on the subscriptions generated through the Apple TV, partners include MLB.TV, Hulu Plus, Netflix and even HBO.

HBO Now, the cable giant’s internet TV streaming service, is a three-month exclusive to Apple’s devices and costs $15 per month. Both companies have not revealed the terms of their arrangement.

A lower cut might entice more content creators to bring their offering to the Apple TV, and with the set-top box heading for a revamp later this year, it would only make sense to have as many partners onboard as possible to set the new Apple TV apart from its rivals.

Adnan Farooqui
Categories: Apple
Tags: Apple TV, hbo