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Apple takes 15% cut from HBO Now and other Apple TV subscriptions

by Killian Bell | April 14, 2015April 14, 2015 5:02 am PDT

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Apple is taking a 15% cut from the new HBO Now service for Apple TV, and it will charge the same for other TV subscriptions, according to a new report.

When the HBO Now service was announced on stage at Apple’s Spring Forward event last month, neither Apple nor HBO disclosed any of the terms behind the deal, which provides Apple with three months of exclusivity.

But according to Recode, the Cupertino company is charging a 15% cut of HBO Now’s monthly fee, and a many others will be charged at the same rate.

“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,” writes Recode’s Peter Kafka.

That’s half of the 30% cut Apple takes from apps, games, e-books, and other digital content sold through the App Store, iTunes, and its other online marketplaces. It’s also significantly less than the 50% that pay TV providers charge networks like HBO.

“That makes the platform even more enticing to cable channels that are thinking about stepping outside of the traditional pay TV bundle,” Kafka notes, “and it puts more pressure on the cable guys to sweeten the deals they already offer.”

It’s a win-win situation for consumers and content providers, then, and it will surely result in even more premium channels for Apple TV later on.

Recode

Killian Bell

Killian Bell is a 20-something technology journalist based in a tiny town in England. He has an obsession with that little company in Cupertino...

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