Apple may seriously reduce its 30 percent take from certain content providers

If you want to do business through one of the companies behind the major smartphone platforms – whether that’s selling your apps, music, movies, or whatever content you’re in the business of making – that means getting comfortable with the idea of forking over a more-than-generous portion of your income to those gatekeepers. Right now, the magic number for many companies is the 70/30 split, with 30 percent of revenue going to the Apples and Googles of the world. While that poses a very lucrative arrangement for them, it doesn’t always seem quite so fair to the devs and artists out there. There’s a chance the situation could start looking much more favorable for some of those creators in the near future, as we get word of a major shake-up that could be in the works for Apple’s ecosystem.

Specifically, we’re talking about in-app purchases of subscription services. Sign up for Spotify Premium right now through the company’s website, and Spotify takes home all of that cash – and considering how thin margins can be with payouts to rights-holders, that’s a big deal. But purchase that same subscription through the Spotify iOS app, and Apple takes its 30 percent cut.

While providers have been putting up with that arrangement so far, as Apple starts competing more aggressively with its own subscription services (as rumored with things like Apple Music), losing that 30 percent on every sale could start looking less and less attractive.

Instead, Apple may be about to drastically reduce its cut from these types of sales – just how much, we don’t yet know, but it’s supposed to be a major change. Unfortunately for devs, there’s no word of similar changes in the works for apps themselves – it sounds like this might be for subscription services only.

Source: Financial Times
Via: Cult of Mac

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About The Author
Stephen Schenck
Stephen has been writing about electronics since 2008, which only serves to frustrate him that he waited so long to combine his love of gadgets and his degree in writing. In his spare time, he collects console and arcade game hardware, is a motorcycle enthusiast, and enjoys trapping blue crabs. Stephen's first mobile device was a 624 MHz Dell Axim X30, which he's convinced is still a viable platform. Stephen longs for a market where phones are sold independently of service, and bandwidth is cheap and plentiful; he's not holding his breath. In the meantime, he devours smartphone news and tries to sort out the juicy bits Read more about Stephen Schenck!