Apple might take a smaller cut of some App Store sales

Apple is reportedly planning to taking a smaller cut of app revenue from some developers, lowering its 30 percent fee for subscription-based services.

The Financial Times reports that Apple is going to change the 30 percent fee that companies pay on subscription-based music, video and news apps, in a move set to benefit the likes of Netflix, Spotify and The New York Times. 

Apple currently takes a 30 percent cut of app sales, as well as a 30 percent cut every month that a subscription renews.

This has meant that subscription-based services end up with higher prices in the App Store. Spotify, for example, is priced at £12.99, as opposed to £9.99 on its own website.

Spotify has previously lashed out at this so-called 'Apple Tax', saying that it gives Apple's incoming Beats Music service an unfair advantage.

The firm said in May: "If Spotify wants to sell its premium subscription service, which usually costs $9.99 a month, through the App Store, it has to raise the price 30 percent higher to $12.99 to pull in the same revenue, while Apple can still offer Beats at a lower price." 

There are no further details on Apple's rumoured changes, but it is likely to be detailed during Apple's Worldwide Developer Conference on Monday as the firm looks to ease regulator concerns ahead of the launch of its own subscription-based music streaming service. 

The Financial Times noted that changing the App Store subscription terms could make Apple devices more appealing to content creators while lessening potential pressure from regulators.

"Changing the App Store's terms of trade could improve the economics of online content businesses and reassure regulators that the company is not abusing its position as gatekeeper to one of the world's most lucrative digital marketplaces," it said.

Ben Drury, strategy chief at 7Digital, applauded the reported move, saying it would hugely benefit the music industry.

"If Apple does move to more viable economics, it would massively benefit the music industry. Many of our clients are desperate to tap into the Apple payment system, but at the moment they can't make the numbers work," he said.

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