Rhapsody to seek legal advice over Apple's new in-app revenue policy
Following Apple’s announcement of its new subscription model for publishers, subscription- music service Rhapsody.
Apple has applied a new subscription service in which it will take 30% in-app revenue, a policy that Rhapsody believes will mean an alteration in its own free music app download service.
A statement from the company, read: "Our philosophy is simple too – an Apple-imposed arrangement that requires us to pay 30% of our revenue to Apple, in addition to content fees that we pay to the music labels, publishers and artists, is economically untenable.
"The bottom line is we would not be able to offer our service through the iTunes store if subjected to Apple's 30% monthly fee versus a typical 2.5% credit-card fee," it added.
Rhapsody plans to continue to allow users to sign up through its website, but is also set to take legal consultation on the matter.
“We will be collaborating with our market peers in determining an appropriate legal and business response to this latest development," the statement added.