Apple is planning to cut in half the amount it charges to sell video services over the App Store, a move seen as assuaging concerns of its partners, Bloomberg reported Wednesday.
The tech titan plans to reduce the amount of revenue it collects from subscription video streaming apps from the current 30 percent to 15 percent, Bloomberg reported, citing unidentified people familiar with the company's plans. Apple takes a 30 percent cut of sales for app subscriptions, but if an app maker holds onto a subscriber for a year or longer, Apple's cut will shrink to 15 percent.
The concession could go a long way toward soothing the feelings of partners, who have long accused Apple of using the App Store as a means for stifling rival services. The move also underscores the growing importance video is playing to Apple, which next month will launch a new TV app that showcases TV shows and movies from apps that a customer subscribes to.
Apple representatives did not immediately respond to a request for comment.
reading•Apple reportedly plans to cut App Store video fees
Mar 21•5 tips to make your iPhone speakers louder
Mar 21•iPhone SE 2: Rumored specs, price, release date
Mar 21•Apple Watch's new line of bands are a colorful bunch
Mar 21•Apple's March 27 education event in Chicago (live blog)