Apple is planning to launch its own TV app for the iOS and tvOS platforms and it is seen as a cornerstone of its own video strategy. To leverage the app, the company is reportedly slashing premium fees.
The payment scheme should be quite convoluted for consumers who are only familiar about downloading apps and consuming content in the app marketplace.
Video Publishing In iOS App Store
It is widely believed that media providers such as Netflix and Hulu Plus have to give Apple around 30 percent for each sale, a policy that purportedly began last year. The outrageous amount has been a cause of a lot of grumblings from the ranks of the media publishers.
The immense size of App Store market has so far kept them from launching an open revolt. Not a few of these publishers state how the policy runs smack into the realm of anticompetitive behavior.
Information obtained by Bloomberg revealed that Cupertino is now willing to shed about half of the premium payment. It should already appease video service providers despite the fact that the offer includes one particular string attached.
To avail of the reduced premium, video services must be willing to be integrated into its new TV app.
What Is iOS TV App?
The world has already seen the iOS TV app after its debut last October. Essentially, the TV app will be aggregating video content in one location. Apple is aggressively pursuing content providers such as Netflix and Hulu after its live TV service ambition fizzled out.
Apple had difficulty securing rights from broadcast and cable networks who are wary of the company's goals. These companies recall how Apple immediately dominated the music industry after gaining a mere foothold. The offshoot is that Apple has been forced — at least at this point — to turn to Hulu, Showtime and HBO for its own programming.
Courting Netflix
When the TV app integration proposal was outlined, Netflix reportedly balked. The video streaming service cited that it is against Apple's data-collection policy to explain its decision. It is not yet clear if the company has other reasons for saying no. Observers are now less certain about Netflix's position after the drastic premium price drop.
At this point, the emerging narrative is that the App Store fee reduction will effectively hit two birds with one stone. On the one hand, it will address the unhappiness of video service providers in general. On the other hand, Apple will be ensuring that iOS TV app enjoys tremendous support from the get go.
