Apple will reduce its cut of in-app revenue from some news publishers from 30% to 15% if they participate in Apple News
Apple reduces its in-app revenue cut to 15% from 30% for some publishers
Publishers who join the program must agree to deliver all of its content to Apple in its preferred Apple News file format. The publishers also must deliver metadata to Apple about its stories and must have an active, robust presence in the markets where Apple News is available. Publishers were able to apply to the News Partner Program starting yesterday. To reiterate, publications signed up for the program will see a 50% reduction in Apple’s first year take to 15% for subscriptions made through the publication’s own app or the Apple News app.
Apple normally takes 30% of the revenue generated by a subscriber’s first-year subscription with a publication. The cut drops to 15% for the second year of a subscription and other years afterward. News publishers are not among the highest-grossing apps in the App Store with the top ten collecting just $68 million during the first seven months of this year according to Sensor Towers.
Apple says that its 30% cut is no different than the fees collected by other companies including Google
Several app developers such as Netflix and Spotify no longer allow subscribers to sign up for service through the App Store to avoid Apple’s cut. In court, Apple has argued that its 30% slice of the pie is no different than the fee collected by other firms including the 30% slice of Play Store revenue that Google collects.
Additionally, some overseas governments such as South Korea’s, are examining the App Store’s in-app payment process in an attempt to ban Apple from forcing developers to use its in-payment platform.
Besides giving publishers a break, Apple also has a plan for established video providers such as Amazon. This plan drops Apple’s cut to 15% from 30% if the video providers integrate their apps with Siri and other Apple features.
