News Publishers Want the Same Discounted 15% Revenue Share Apple Offered Amazon Prime Video

[MacRumors]

Major news organizations who offer their content in the App Store want to be able to keep a larger cut of subscription revenue from customers who subscribe to the service through Apple's platform, reports The Wall Street Journal.

Digital Next Content, a trade group representing the New York Times, the Washington Post, The Wall Street Journal, and other publishers sent a letter to Apple CEO Tim Cook seeking a better deal that would allow them to keep more of the money from subscribers.

Apple takes a 30 percent cut from first-time subscriptions that are made through iOS apps, which drops down to 15 percent after the first year. Digital Context Next in its letter cited a deal made with Amazon for reduced fees, which surfaced as part of an antitrust hearing into Apple's App Store practices.

For Amazon Prime Video, Apple offered Amazon a special deal where it took just 15 percent of subscription revenue, and the publishers want the same deal. The letter asks Apple to "clearly define the conditions" that Amazon met to garner that agreement.

"The terms of Apple's unique marketplace greatly impact the ability to continue to invest in high-quality, trusted news and entertainment particularly in competition with other larger firms," said the letter, which is signed by Jason Kint, chief executive of the trade body, Digital Content Next.

In a blog post, Digital Context Next highlights the recent Epic Games vs. Apple conflict, which saw Epic Games publicly revolting against Apple's App Store policies by implementing a direct purchase option in Fortnite that violates the rules, which led to the Fortnite app being removed from the App Store.

Epic Games has since filed a lawsuit against Apple, causing companies like Spotify and Facebook to also speak out against the Cupertino company.

Digital Content Next complains that Apple's 30 percent fee drives publishers away from direct audience revenue, pushing them into the "murky world of digital advertising." The group also points out that Apple CEO Tim Cook during his recent antitrust testimony said that the reduced deal made between Apple and Amazon was "available to anyone meeting the conditions," and calls on Apple to "level the playing field" and provide transparency on its secret Amazon agreement.

Article Link: News Publishers Want the Same Discounted 15% Revenue Share Apple Offered Amazon Prime Video

 

[CthuluLemon]

And another group piles on.

 

[Mescagnus]

Apparently now everyone is out to get a bigger slice of the Apple pie.

 

[itsmilo]

Oh to be a lawyer for Apple right now

 

[CthuluLemon]

Apparently now everyone is out to get a bigger slice of the Apple pie.

They’d probably say get the slice they are overdue.

 

[The Phazer]

But Apple treats all developers the same!!!

Am I doing it right?

 

[a m u n]

Apple takes a 30 percent cut from first-time subscriptions that are made through iOS apps, which drops down to 15 percent after the first year.

If they have 15% after the first year, where is the point? Is it not enough?

 

[teagls]

Apparently now everyone is out to get a bigger slice of the Apple pie.

Whats the quote from Ironman. Something like, "if you can make God bleed, people would cease to believe in him. There will be blood in the water, the sharks will come."

 

[GizmoDVD]

Embarassing. Most consumers would never subscribe in the first place to these individual outlets for their “news”. Cut your nose to spite your face.

 

[Mikey44]

Sigh.

If Epic wins the case against Apple, I can see this having merit, and will likely blow up.

If not,I see these publishers doing the same type of thing.

So much journalisming!

 

[thadoggfather]

But... but... I thought Tim gave a sworn statement no developers got preferential treatment?

How can it be SO?

 

[IIGS User]

Apple acts more and more like Microsoft in the 90's.

Apple gets treated more like Microsoft in the 90's.

Change the names around. Wash, rinse, repeat....

 

[alphaod]

I'm pretty sure the same "deal" Amazon gets everyone is eligible for already.

 

[GizmoDVD]

Sigh.

If Epic wins the case against Apple, I can see this having merit, and will likely blow up.

If not,I see these publishers doing the same type of thing.

So much journalisming!

Epic won’t win, and in the meantime, their golden goose will lose tens of millions of dollars and fade into obscurity (like most of these apps eventually do). Kids are moving on

 

[I7guy]

But Apple treats all developers the same!!!

Am I doing it right?

I would say 98% wet finger in the air. In many business I know your bigger customers always get preferential treatment...that's just the way it is.

 

[DNichter]

I wasn't aware of the Amazon deal, but if you did it for them, that opens you up to everyone. Feels like Apple will need to drop this down to 15% for everyone to get through this issue. It will sting, but probably best for everyone involved.

 

[TheYayAreaLiving 🎗️]

Dang! App Store is on fire! Where the Apple fellow member is at?

 

[I7guy]

But... but... I thought Tim gave a sworn statement no developers got preferential treatment?

How can it be SO?

No developers as in 100% no exceptions, ever? Don't think it's that binary.

 

[Anox]

Are we talking about Apple news+ subscription

because if so then Apple is the developers...

I do think that since it is a subscription this has merit even without epic’s whole Spiel but I just don’t get why come out to the public about it

is there no other way doing business then public pressure ...?

if I ran Apple I would seriously consider shutting down the App Store

 

[thadoggfather]

No developers as in 100% no exceptions, ever? Don't think it's that binary.

Yet, his statement was unequivocal.

Also didnt realize Amazon was a mums and pops shop that made a convincing case for not being able to withstand the 'Apple tax' independents must concede to

 

[smulji]

If they have 15% after the first year, where is the point? Is it not enough?

Amazon only pays 15% from day one. That's the same deal the publishers want. It's a fair request.

 

[Mailia]

Oh to be a lawyer for Apple right now

Great job security.

 

[smulji]

I wasn't aware of the Amazon deal, but if you did it for them, that opens you up to everyone. Feels like Apple will need to drop this down to 15% for everyone to get through this issue. It will sting, but probably best for everyone involved.

Exactly. During the DOJ anti-trust hearings, Apple went on record stating that they treat all developers the same which according to evidence provided they obviously don't. This is a fair request by the publications or any developer offering a subscription-based service.

 

[nattK]

Since part of Amazon's deal was for Prime Video to be on Apple TV, maybe Apple should offer a 15% revenue share with the publishers only if they are willing to be part of Apple News/Apple News+. We can't have publishers like NYT withdrawing from Apple News bragging they make more money elsewhere and now come groveling for a lower cut.

 

[neohavix]

If they have 15% after the first year, where is the point? Is it not enough?

It's never enough for money grabbers.