Apple to Reduce App Store Fees to 15 Percent for Subscription-Based Video Apps


Apple is planning on reducing the fees it charges to content makers and companies that sell their video streaming services through the App Store. The company is hoping that by reducing the fees, it would be able to appease content makers and encourage them to put more content on the App Store.

By default, Apple charges 30 percent of the total revenue from app developers for publishing their app on the App Store. However, it is considering reducing the fees to 15 percent for subscription-based video streaming apps and services. Currently, Apple only reduces the fees to 15 percent for subscription-based apps after a customer has subscribed to that particular service for more than a year.

Apple’s hefty cut of sales made via its App Store has long angered partners, some of whom have accused the technology giant of anti-competitive behavior. The concessions speak to the growing importance of video to Apple, which next month will introduce a new app devoted to TV shows and movies.

The report claims that certain streaming services are already paying Apple only 15 percent of their monthly subscription fees. So, the company will now be extending this benefit to all video streaming services that will integrate with its upcoming TV app, which was announced in late October.

Many companies increase the subscription prices of their streaming services to compensate for Apple’s high fees. With Apple lowering its rate by 15 percent, it is now likely that video streaming services that will benefit from this will reduce their subscription prices on the App Store as well.

[Via Bloomberg]