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App Store Spotify Apple

Apple rethinks commercial model for apps

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By Jennifer Faull, Deputy Editor

June 6, 2015 | 2 min read

Apple is looking to move away from the current commercial model for its apps, a move which would benefit subscription services like Netflix and Spotify.

Currently, Apple takes a 30 per cent fee when a service is purchased by a consumer through an app.

In the case of Netflix for example, Apple will take $2 when someone purchases Netflix subscription through the Netflix iOS app.

The decade old strategy has been dubbed the ‘Apple Tax’ and led regulators to question how fair it is on media companies and developers.

However, according to the Financial Times, Apple is now looking to change the 30 per cent fee that it currently charges and has already discussed new commercial terms with media companies.

Apple has already altered its model for Apple TV, taking 15 per cent of revenue generated from subscriptions.

New terms have not been detailed, although reports have emerged that Apple might take as little as a five per cent cut of revenue.

App Store Spotify Apple

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