Apple Inc., in order to please the partners whose movies and TV shows are important to the tech giant’s TV, plans to reduce the charges of its video services available on the App Store. According to Bloomberg, the Cupertino giant has plans of reducing the revenue collection from subscribed video streaming apps from 30% to 15%. This major cut in revenue is hopeful of appeasing multiple partners who have been accusing Apple of using the App Store as a means of strangling rival services. Hence, these concessions in revenue are a way of appealing to the ever increasing importance of video services to the tech giant, which intends on introducing a new application that would be devoted to TV shows and movies.
The new TV app is one of the many efforts of Apple to make its products the hub for watching TV shows and movies. Earlier Apple had plans of introducing ist own TV line but had delayed the plans after facing problems regarding getting rights from programmers and broadcast network. However, the Apple Tv functions on programming services like HBO, Showtime and Hulu.
It was reported by Bloomberg that some of its video partners have already been paying 15% instead of 30% of the monthly subscription fees. If the current reports are true, then Apple intends to extend this courtesy to every programming channel that is involved in the new TV app. To compensate for the fee, a few of these service providers are known to have increased the prices of their services sold through the Apple store. It is speculated that this has been done to match the revenue generated on other distribution channels.