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Apple to halve App Store fees for content providers integrated with new 'TV' app, report says

Apple is reportedly planning an App Store fee schedule revision that will see its slice of revenue from subscription video services, and potentially other non-video providers, drop from the customary 30 percent to only 15 percent.




Citing sources familiar with the matter, Bloomberg reports Apple's upcoming plan to halve its take of revenues is meant to placate media providers as it readies its own video strategy.

The new rate structure comes with a caveat, however. To be eligible for reduced App Store fees, video services must be integrated with the new TV app, the report said.

Movies and TV shows from services like Netflix are integral in the success of Apple's wider multimedia strategy, though some providers have in the past been critical of App Store fees. In particular, companies are displeased that they have to pay a premium to sell their app on the App Store, with some going so far as to label the demands as anticompetitive behavior.

For Apple, the move could ease tensions as it prepares to launch "TV," a new app for tvOS and iOS that collects into a single location movies, TV shows and other video content from multiple providers. Announced in October, TV is designed to be a one-stop video hub for Apple device users, complete with universal search options and content curation for surfacing new shows.

As noted by Bloomberg, the coming fee reduction is technically an extension of exclusive deals the company has in place with certain existing providers. Reports suggest Netflix, Hulu Plus and MLB.TV have been paying 15 percent App Store revenue sharing rates since last year, for example.