Apple could start taking a smaller cut from each app store sale, effectively ending the so-called ‘Apple tax’ on subscription services that would benefit the likes of Netflix and Spotify. According to the Financial Times, Apple plans to reduce its 30% fee for subscription music, video, and news apps. The move would be designed to […]
Apple could start taking a smaller cut from each app store sale, effectively ending the so-called ‘Apple tax’ on subscription services that would benefit the likes of Netflix and Spotify.
According to the Financial Times, Apple plans to reduce its 30% fee for subscription music, video, and news apps.
The move would be designed to curb concerns from regulators as Apple enters the subscription music business next week.
Apple currently takes an industry standard 30% cut of all app purchases, but unlike rivals such as Android it also takes a 30% cut every month that a subscription renews as well.
That means subscription services end up listing higher prices in the App Store in order to make the money that they need to stay afloat
Spotify and Tidal, for instance, charge $12.99 per month in the App Store but only $9.99 per month on their websites.
The decade old strategy has been dubbed the ‘Apple Tax’ and led regulators to question how fair it is on media companies and developers.
Apple has already altered its model for Apple TV, taking 15 per cent of revenue generated from subscriptions.
New terms have not been detailed, although reports have emerged that Apple might take as little as a 5% cut of revenue.
Read the FT report here
