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April 15, 2015

New report says Apple is taking a 15% cut of subscriptions on Apple TV apps

by John_A

A new report says that any subscriptions to video services made via Apple TV results in just 15% of those revenues going back to Apple.

While Apple normally takes 30% of revenues from monthly subscriptions that come from the iOS App Store, any paid sign-ups that come via Apple TV for apps like HBO Now, Netflix, and Hulu Plus have the reduced 15% fee. According to Re/code:

To consumers, this doesn’t matter: Whether you sign up for Hulu Plus on Apple TV or an iPhone, you can watch the service on any Apple device. And until now the difference between the two sign-up methods hasn’t been a big deal for the video distributors either. Executives at companies that have Apple TV sign-ups say the device has been an insignificant source of new customers.

However, the story notes that revenue price cut might change in the future as Apple could launch a revamped version of Apple TV later this year.

Source: Re/code

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