Uh-oh. Apple seems to be lowering some fees essential to its ecosystem. Now that competition is more fierce than ever, the App Store is softening up.
To a very much a surprise, Apple is planning to cut the 30% App Store fee to just 15% on its video services. Bloomberg also reports of a very dramatic shift announced way back in June which will change how Apple will collect revenue from third-party subscription services within its ecosystem. It was the same rule that enabled Apple to lower the App Store fees down to 15% right after a certain user had been paying for a year. This will be the same case with the video services effective for new and existing clients.
Bloomberg reports that Apple will only expect that the video provider will integrate its upcoming TV app. Up to be released this December, this TV app was already announced in October and will be a one stop shop for both iOS and Apple TV users. It will let them browse shows and movies from different apps, which will eventually support the same platform they are offered in. Netflix even vocally disagreed with Apple’s data-collection policy and results of it not supporting the Apple TV app when it launched. Yet, it is still unclear if Netflix would change its mind now that video services will be priced much lower.
It’s been the norm now that Apple is having problems with cable networks like Netflix, Amazon and HBO for its own entertainment departments. With them being unable to offer an over-the-top cable bundle like Sling TV and PlayStation Vue, this move is very critical for them to at least survive another year of being well behind the competition. Apple’s TV app is its next best shot at maintaining control over how users of its devices consume video.
Apple cutting down the fees for its services may well entice other major providers who have complained of the company’s high fees with them operating in the App Store. Some companies have even raised the price of subscribing through the App Store, or in some cases urged customers to sign up online instead, so as to make up for Apple’s revenue share or avoid it altogether.