Apple will reportedly slash App Store fees in half for video services

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Hello Again - Apple TV Library
Apple’s new TV app in action.
Photo: Apple

Apple will reportedly slash its 30 percent App Store fee in half for video services that support its upcoming TV app, according to a new report. The incentive should persuade more providers to support the app, which is set to be released next month.

Apple has taken a 30 percent cut of developer sales since the App Store opened its doors in 2008. However, the company announced back in June that it would drop its fee to 15 percent for subscription services after a customer had been paying for a year.

Now it looks like Apple is planning to offer the same rate to video services. According to Bloombergthe lower rate will be charged to those that choose to support the upcoming TV app that will launch with iOS 10.2 and tvOS 10.1.

Unveiled during the MacBook Pro event last month, the TV app is a central hub for all things video. It lets users browse for movies and TV shows across all their favorite services without having to search each one individually. It also boasts full Siri integration.

TV already has support from the likes of Hulu and HBO, but a notable omission is Netflix, which chose not to agree to Apple’s data collection policy. Apple will be hoping that its reduced App Store rate can persuade the company, and others, to embrace TV.

It could also persuade Netflix, Amazon, and others to finally allow customers to pay for their subscription through iTunes. Right now, these companies are dodging Apple’s 30 percent fee by forcing customers to use other devices, or their web browser, to sign up.

Others, such as Google, charge customers more if they choose to pay through iTunes. A subscription to YouTube Red is priced at just $9.99 a month if you sign up online, but it’ll cost you $12.99 a month if you sign up on an iOS device.

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