Apple Halves Revenue Share For Apple TV. Now Takes 15% Of Subscription

Apple TV
Apple TV

To bring more content to its Apple TV, Apple has reportedly agreed to take 15 percent of revenues earned through subscriptions. Apple has a longstanding policy of taking 30 percent cut on content sold through its digital stores. This revenue sharing model is same for all contents including music, movies, TV shows, subscription fees for magazines and other recurring charges.

To bring more content to its Apple TV, Apple has reportedly agreed to take 15 percent of revenues earned through subscriptions. Apple has a longstanding policy of taking 30 percent cut on content sold through its digital stores. This revenue sharing model is same for all contents including music, movies, TV shows, subscription fees for magazines and other recurring charges.

Apple enforced the same policy to Apple TV as well, and it was, until now. As per reports, not all channels are happy to have 30 percent cut in their revenues. Recent reports from Re/code states that, to encourage more partners, Apple has halved the cut on subscription for MLB.TV, Hulu Plus, Netflix and HBO. In addition, HBO Now is a three-month exclusive to Apple's devices and costs $15 per month. This change in policy applies only to the channels in Apple TV and Developers of Apple TV Apps will still pay their 30 percent cut.

The percentage of the cut does not make a difference to users and will only pay the advertised fee, but the back-end deals are worth millions to Apple and its content partners. With this new development, Apple's revenue share is significantly smaller than what cable companies are currently getting – which is as much as 50 percent.

It is widely rumored that Apple is planning to unveil a new Apple TV device this summer and offer a bundle of channels including content from Disney, CBS, Fox, Discovery, and Viacom, among others for around $20 - $40 per month. The new device will not have 4K video support but will feature Siri integration and an App Store.

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