Netflix against Apple single-stream subscription model for video

Major news publishers were not happy to hear that Apple would be taking half the revenue and evenly split the rest up to contributors from its single-stream news subscription if they were to participate in it.

We’re now hearing that Apple has also been trying to convince video content providers to join its single-stream subscription model for paid shows. Users would tap into one app and pay one monthly fee for access to content from multiple providers.

CNBC reports from its anonymous sources that Lions Gate, CBS and Viacom have tentatively agreed to offer their channels up for viewing on the subscription. Netflix and HBO aren’t apparently keen — the latter did sign up with a similar program from Amazon, Prime Video Channels, but at terms that Apple has yet to match or best.

Apple purportedly wants a 30 percent cut from revenues, the same percentage it gets from app revenues, but worse than the 15 percent it has negotiated for the HBO Now app, Netflix and other streaming services, sources say.

Another factor that has shown up on the news side and may apply here is customer data — The Wall Street Journal reports that Apple will not share items like customers’ credit card data and email addresses, meaning that they cannot market content directly to subscribers of the paid tier of Apple News. It is not clear if Apple will offer that data to content providers.

Apple has been working on its own original content and may include it in the paid subscription, said to launch in April or May. The company is supposedly holding an event on March 25 with a focus on new subscriptions.

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About The Author
Jules Wang
Jules Wang is News Editor for Pocketnow and one of the hosts of the Pocketnow Weekly Podcast. He came onto the team in 2014 as an intern editing and producing videos and the podcast while he was studying journalism at Emerson College. He graduated the year after and entered into his current position at Pocketnow, full-time.