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Apple reportedly taking 15% cut of HBO Now & other subscriptions on Apple TV

Apple has long taken a 30% cut of sales made through its various digital stores, including fees charged for subscriptions to Newsstand magazines and other recurring charges. However, Re/code reports today that the company has cut that figure in half for subscriptions charged through the Apple TV.

In a move that’s likely intended to bring in content, Apple allows companies like Hulu and HBO to keep a larger portion of their subscription fees on the TV-based hub device, though charges made through iOS apps and other platforms still seem to fall under the 30% deal.

When exactly this revenue share change was made is unclear, but it doesn’t seem to be a new developement, given that services which have been on the Apple TV for some time now fall under these terms. The point is nearly moot though, when you consider how many offerings on the Apple TV are completely free of charge, or don’t offer in-app subscription options.

Based on the success of Apple’s exclusive HBO Now partnership, however, it’s possible that future channel additions could impement a similar system that allows users to purchase subscriptions through their Apple IDs. This deal could also help Apple secure more content providers for its upcoming digital television service.

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Comments

  1. chrisl84 - 9 years ago

    Never got HBO through my cable company, but really have been enjoying HBO Now on Apple TV. So far I plan to renew subscription after the free trail ends.

  2. Sounds good. 15% is what they should take from the App stores as well.

  3. galley99 - 9 years ago

    Perhaps it’s because Apple doesn’t have to host the content?

  4. moofer1972 - 9 years ago

    I would pay up to $5/mo more for HBO directly on AppleTV than it costs through UVerse. My contract is up next month and I’ll be pricing it out. I’d really like to start paying for only the TV I watch, and nothing else. VoD or GTFO.

  5. Jamie Gilder - 9 years ago

    Did anybody listen to the most recent Talk Show with John Gruber and Ben Thompson? Leads me to what they’ve been talking about. Perhaps HBO are streaming this service to Apple TV and not Apple always hosting the content?

    Could be why it’s less?

    • Mike Beasley - 9 years ago

      This is exactly how all of the Apple TV channels have worked since the beginning. Apple doesn’t host anything except iTunes content. Hulu serves its own stuff, Netflix serves its own stuff, HBO serves its own stuff, etc etc.

      It does seem like a logical assumption that Apple can cut the rate in half in this case since they don’t have to do the heavy lifting, where the iTunes Store, App Store, and iBookstore all rely on Apple’s infrastructure.