Apple Might Reduce Their Cut Of App Store Video Subscription Revenue

There are rumors that Apple apparently wants to get into the video business. So far Apple TV has been the company’s efforts but from what we hear, that’s not their full vision. Apparently Apple has huge plans to offer up original programming, essentially turning themselves into platforms like Netflix, Hulu, and so on.

Unfortunately Apple isn’t quite there yet. We’re not sure what’s with the hold up, but could money be a reason? We suppose it is possible because according to a report from Bloomberg, Apple is apparently thinking about reducing their cut from video subscription revenue from the app store, reducing it from 30% to about 15%.

According to the report, it seems that some of Apple’s video partners have been pretty frustrated with the 30% cut that Apple takes. This isn’t just an issue with video partners, but other apps that rely on in-app purchases. This is why Amazon does not sell ebooks within its Kindle app on iOS, and also why Spotify had at one point in time encouraged customers to buy a subscription from their website directly instead of through the iTunes App Store.

So will the cutting of revenue Apple gets from videos be enough to convince content creators to join up with the Cupertino company? We guess only time will tell, but in the meantime it looks like Apple’s competitors will be getting a very long head start.

Tyler Lee
Categories: Apple, Rumors
Tags: iOS