APPLE REPORTEDLY PLANS to give developers of video-based apps a bigger cut of App Store revenues, assuming that they integrate with the firm's own TV app.
That's according to a report at Bloomberg, which claimed that Apple will lower its usual 30 per cent fee to 15 per cent for apps that are compatible with its TV app, which is due to be released next month.
The firm no doubt hopes that lessening its share of App Store takings will entice major providers that have long complained about the cost of operating in the App Store.
Some companies, such as Google's YouTube Red, have 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.
It remains to be seen whether Apple will persuade Netflix to sign up to its TV app, as reports claim that the streaming service disagrees with Apple's data collection. Amazon too has yet to sign up to the service.
This reported move comes after Apple offered a bigger cut of fees to subscription-based apps in all categories.
However, while video apps get a 15 per cent slice of the pie from the get-go, Apple drops its cut to 15 per cent once a developer of a subscription-based app has had a customer signed up for 12 months.
This followed complaints from Spotify, which hit out at Apple's "anticompetitive" App Store practices, describing the firm's then 30 per cent revenue cut as "Apple Tax".
But it wasn't this backlash that persuaded Apple to revamp its apps model, according to Philip Schiller, senior vice president of worldwide marketing at Apple.
"It wasn’t done from a negative like that [but] because we recognise that developers do a lot of work to retain a customer over time in a subscription model, and we wanted to reward them for that by helping them to keep more of the revenue," he said at the time. µ
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