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Apple TV Publishers Being Charged 15 Percent of Subscription Fee: Report

Apple TV Publishers Being Charged 15 Percent of Subscription Fee: Report

By NDTV Correspondent | Updated: 14 April 2015 15:44 IST

Apple reportedly takes a 15 percent cut of the monthly subscription fee charged by video services who sign up customers on Apple TV, instead of the 30 percent monthly subscription cut from all publishers on the iPhone or iPad.

According to a Re/ code report on Monday, the Apple TV-specific 15 percent subscription fee is said to be applicable for a handful of service provides, such as Hulu Plus, Netflix, and MLB.TV. Apple had back in 2011 announced a 30 percent subscription fee, and it is unclear that when it changed the policy for its Apple TV partners. However, these partners reportedly say Apple TV sign-ups are negligible.

This could change however, with launch of the HBO Now service, which is exclusive to Apple TV for the first three months. The Apple TV platform with the service's launch is seeing a major marketing push from HBO, and may numerous new sign-ups.

HBO Now charges $14.99 a month for the service. It include the network's past, present and future series plus its lineup of Hollywood movies. It is said to be the first time the premium network will be available to people with Internet access who shun traditional TV bundles with dozens of channels.

Meanwhile, Apple is also said to be trying to strike HBO Now distribution deals with its existing pay TV distributors, so that they can sell the service as an add-on to their existing subscribers, adds report. Till date, HBO has reportedly brought on Cablevision, and is said to be in talks with Cox and Verizon.

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