Apple to Cut Fees Video Services Will Pay for App Store, Say Sources
- Move comes as Apple prepares to roll out a new TV app
- Video partners had been frustrated with Apple’s revenue slice
Customers wait in line for the iPhone 7 smartphone outside an Apple Inc. store in New York, U.S., on Friday, Sept. 16, 2016.
Photographer: John Taggart/BloombergThis article is for subscribers only.
Apple Inc. plans to cut the amount it charges to sell video services over the widely used App Store, a move to appease partners whose movies and TV shows are vital to the technology giant’s video strategy.
The iPhone maker intends to reduce the slice of revenue it is paid by subscription video streaming apps from the current 30 percent to 15 percent, according to people familiar with the plans. Other non-video apps see their bill from Apple halved from 30 percent only after a customer has completed a year’s subscription. Apple spokesman Tom Neumayr declined to comment.