Apple may be looking to reduce the 30 percent cut that it takes from in-app media subscriptions, according to a new report in The Financial Times. The company is apparently in discussions with media companies looking to change the 70/30 revenue sharing split that Apple has traditionally offered for paid subscriptions to music, video, and news content.
While the same revenue sharing model has been adopted by rival companies Google and Amazon, an improvement to the App Store’s pricing terms for content providers would help to ensure the iOS platform remains attractive to media companies as well as possibly reassuring regulators that Apple is not abusing its dominant market position. Services affected would include companies such as Spotify, Rdio, Netflix, Hulu, HBO Now, Condé Nast and The New York Times, among many others.
The move would also encourage more companies to take advantage of Apple’s in-app payment system for subscriptions, rather than working around them with browser-based solutions in order to avoid paying the 30 percent share to Apple, or passing the additional costs along to subscribers with higher pricing for those who choose to use Apple’s in-app payment system. While the report notes that Apple is in discussions with media companies about adjusting the revenue sharing model, no information has been provided about exactly what amounts Apple would be willing to settle for.
