Apple will reduce its commission for video services in the App Store

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This may be something that you do not know, however, the developers of applications for Mac, iOS or Apple TV, are well aware. Apple charges a 30% commission for every sale that occurs in its app store, which includes the applications themselves and in-app purchases, whether they are one-time purchases or subscriptions. Thus, for every ten euros sold through the App Store, the developer receives seven, while the Cupertino company keeps three.

This has caused some discontent, especially among those who have more power to exert force; Some have even accused Apple of "unfair competition", such as Spotify. Now this situation could change and Apple would be willing to cut its commission up to half, lowering it from the current 30% to 15%, a somewhat more reasonable amount however this change, if it occurs, will not benefit everyone.

Apple gives in to video distributors, but not without interest

Apple plans reduce the commission you charge for selling video services through your app store in order to appease the spirits of some of its partners but also because the business of movies and television series are an essential part of the company's strategic business model. Recall that throughout 2016, the only increase in profits that Apple has seen comes from services, and nothing more and nothing less than over 20% during the last fiscal quarter of this year.

The Cupertino Company intends to reduce revenue collection from subscription video streaming applications from the current 30 percent to 15 percent, as published by Bloomberg referring to "people familiar with the plans."

According to recent modifications made by the company, other non-video applications already see their bill to Apple cut in half, but only after the customer has completed a first full year of subscription.

What is the reason for this change in strategy?

As is usual in these cases, the reason is none other than economic. For a long time, Apple partners have been "irritated" by the sharp cut in sales through the App Store. Some have even accused the tech giant of anti-competitive behavior. At the same time, these concessions by Apple indicate the growing importance that video is acquiring for the company, which will soon launch a new application dedicated especially to this type of content.

The new TV app is part of Apple's effort to turn its devices (iPhone, iPad and above all, Apple TV, into the epicenter of the consumption of films, series and documentaries from various applications from a single place.

Apple has already tried, without success, to create its own television service, but those who hold the rights have always viewed these intentions with suspicion, probably when seeing how the company acquired a dominant role in the music industry. Instead, Apple has created an application that depends on the programming of services such as Hulu, Showtime, Netflix and HBO, but that at the same time will serve as a boost to these services.

As an exception, as a rule

The truth is that some partners in this sector have already paid a 15% commission to Apple for some time, according to Bloomberg, but the company has now made the exception the norm, extending the new rate to all those subscription video services, as long as they are integrated with the new Apple TV app.

Until now, some providers try to compensate that amount they pay Apple by increasing the cost of the subscription when it is made through the App Store, for example, the YouTube video service costs 12,99 per month instead of 9,99 $ XNUMX usual; Spotify, a music service, also maintains this policy.


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