Apple reportedly looking to reduce 30% revenue cut for music, video and news apps with subscriptions

[Victorious Secret]

 

 

Looks like changes are abound for how Apple structures their cut for a rather large section of their online purchases, the music one is especially interesting given the negotiations usually required to get royalty rates approved by record labels in the first place. 

 

Does this mean Apple will give content creators more, or simply take less on their own while paying out the license holders more? Who knows. Maybe we will get some more information at WWDC, I hope we do. 

 

I just want 4K streaming Apple. Make that a thing please. All these gorgeous TVs with nothing to watch. I want my 130" of 4K Interstellar. 

 

 

A new report by the Financial Times suggests that Apple is looking to change the 70/30 revenue share for certain types of App Store apps. The report claims that Apple wants to change the way revenue is distributed between developers and Apple for music, video and news apps.

 

 

The report is a bit circumspect as the timing of the change does not seem to be related to any particular incident, although potentially Apple is forced into cutting the share due to potential anticompetitive complaints with Apple Music, to be announced next week.

 

 

Developers hoping to make more money as a result of this change should not get their hopes up; the report specifically targets apps with subscriptions (like news apps or music subscriptions). It does not suggest that Apple will be reducing the 70/30 split universally.

 

http://9to5mac.com/2015/06/05/apple-reportedly-looking-to-reduce-30-revenue-cut-for-music-video-and-news-apps-with-subscriptions/

 

[Swndlr]

so i dont get it, we're gonna have to subscribe to Apple's plan if we want to purchase music or something?

firstly i think thats dumb, most of us should

secondly, this scares me because we've already seen artists pulling their music from free sources like spotify, i hope apple fails with this idea.

[Sauron]

I want my 130" of 4K Interstellar. 

 

[Victorious Secret]

so i dont get it, we're gonna have to subscribe to Apple's plan if we want to purchase music or something?

firstly i think thats dumb, most of us should

secondly, this scares me because we've already seen artists pulling their music from free sources like spotify, i hope apple fails with this idea.

 

Thats not what it means at all. Seriously. RTFA and do some background reading if you're unsure. 

 

Having your content on Apple's distribution platform comes with the agreement that Apple gets a 30% cut of everything, doesn't matter what. Music, movies, apps, in app purchases, books; whatever. Apple takes 30% for hosting the content and supplying the servers and backend and validation and everything. 

 

Apple is looking into changing that structure for certain product categories, as mentioned in the title. Maybe it means decreasing from 30%. Maybe it means increasing from 30%. Maybe it means changing where that 30% goes after the fact. 

[Bouzoo]

How about that. Seems they want to increase their market (obviously) by letting "devs" earn more (1% is 1%). I hope they split it in a clever way. This might turn out to be a good thing.

[spartaman64]

why is apple getting a cut of the revenue for subscriptions apps in the first place? shouldnt the app makers just pay whatever amount you pay to get your app listed on the app store. so apple gets a cut of the netflix and spotify subscription if the subscriber uses an ios device? i dont get how this works

[TroubleKlef]

why is apple getting a cut of the revenue for subscriptions apps in the first place? shouldnt the app makers just pay whatever amount you pay to get your app listed on the app store. so apple gets a cut of the netflix and spotify subscription if the subscriber uses an ios device? i dont get how this works

 

Buy a Spotify subscription on an iOS device, Apple gets a cut. Buy a Spotify subscription on let's say, a web browser, Apple doesn't get a cut.

[spartaman64]

Buy a Spotify subscription on an iOS device, Apple gets a cut. Buy a Spotify subscription on let's say, a web browser, Apple doesn't get a cut.

that is super weird ill remember not to order any subscriptions on ios devices and only on their website then

[Trik'Stari]

Buy a Spotify subscription on an iOS device, Apple gets a cut. Buy a Spotify subscription on let's say, a web browser, Apple doesn't get a cut.

Isn't it only like, 99 cents for three months to begin with?

 

I gotta admit, that feels a little bit cheap, I would think the advert revenue from three months would be greater than the 99 cents.

[LAwLz]

Isn't it only like, 99 cents for three months to begin with?

 

I gotta admit, that feels a little bit cheap, I would think the advert revenue from three months would be greater than the 99 cents.

The 99 cent for 3 months is a special deal. After that 3 months (and usually) it's 9.99 usd per month for spotify. That's 36 dollars to Apple from a single user subscribing for 1 year if they sign up on iOS.

[Trik'Stari]

The 99 cent for 3 months is a special deal. After that 3 months (and usually) it's 9.99 usd per month for spotify. That's 36 dollars to Apple from a single user subscribing for 1 year if they sign up on iOS.

Now that seems a bit more fair for the artists (not talking about apple).

 

I don't mind paying the content creator of something, it's the greedy ass middlemen who take too much money that I mind.

[Ertman]

I have nothing personally in this, but I would like go see them take less of a cut. Maybe it might allow developers and content creators to charge less, or be more profitable which allows the development and creation of something newer and more interesting.

[Mightyinvader]

It would seem this is the way forward. Looking at windows 10 being a free platform with most likely paid benefits down the road. The innovation of services such as netflix and online gaming has seem to caught on to the big companies. Apple has clearly realised what you could call DLC's and subscription are the best way forward for their company, although I'm sure with apple being apple they will somehow find a way to make it more appealing to everybody. How long till we see the Ihome?