How Apple Entices Content Providers to Apple TV: Discounted 15% Revenue Share

By now, most developers and companies know that selling their digital product subscription through iTunes will result in a 30 percent cut from Apple. But according to Re/code, Apple has relaxed this commission for Apple TV, in what appears to be an effort to lure content providers to sign up for the service:

But Apple didn’t extend its 30 percent policy to developers on its Apple TV platform. While Apple and its partners have never talked about it publicly, my understanding is that a handful of video services, including Netflix, Hulu Plus and pro-baseball’s MLB.TV, give Apple 15 percent of their monthly fees for any subscriber who signs up on Apple TV.

Recently, HBO NOW exclusively debuted (in a 3 month deal) on Apple TV in the U.S. (here’s how to watch it in Canada) which offered subscriptions for $14.99.

The rationale behind this discount on fees by Apple is said to impact how content providers see Apple TV as a distribution network, compared to what pay TV providers usually charge networks like HBO, at a larger 50 percent cut.

While there are free Apple TV apps available, some require a cable TV subscription sign-in to view, such as WWE or NHL GameCentre.

Earlier this year, Bell Media publicly complained it was Apple that would not allow a CraveTV app on Apple TV, noting the iPhone maker’s lack of dialogue on the matter. Jon Taylor, a VP at Bell Media said at the time “I’d love to say we have an app coming on Apple TV but we don’t. This is Apple’s strategy.”