Apple to Reduce the 30% Cut It Takes From Digital Media Subscriptions?

Apple to Reduce the 30% Cut It Takes From Digital Media Subscriptions?

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Apple is planning to reduce the 30% cut it takes from media companies on subscriptions, reports the Financial Times.

The iPhone maker is discussing new commercial terms with media companies, people familiar with the matter said, to change the 70/30 “Apple tax” pioneered by Steve Jobs when its late founder launched the iTunes music store in 2003.The improved terms which are being discussed with media companies would apply to revamped Apple platforms such as its long anticipated TV update and forthcoming changes to Newsstand, its gateway to digital newspapers and magazines, rather than to its existing App Store terms, which will remain the same for developers, according to people close to the discussions.

Talk of the change in economics comes as Apple is planning to launch a new Apple Music streaming service and as it's in negotiations for a web TV service which would launch on a new Apple TV.

The change would make help convince record labels, broadcasters, and publishers to get on board with offering their content via Apple's new services.

Notably, a recent report claimed that Apple is taking just 15% of subscription fees from video service signups on the Apple TV.

While Apple would give up hundreds of millions of dollars by reducing it's revenue share, it may be able to make that back and more by offering new services that reach even more customers.

Apple is expected to unveil Apple Music on Monday at WWDC; however, it's said that a new Apple TV will not be ready in time for the developer conference.

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Apple to Reduce the 30% Cut It Takes From Digital Media Subscriptions?
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