Apple has reduced its Apple Store fees from 30% to 15% in the first year for content publishers using the Apple News platform, subject to certain conditions. This applies to eligible providers who make sales using Apple Store’s in-app subscriptions service. This development is apparently in consideration of the many lawsuits filed against the company for its exorbitant fees as well as criticisms from app developers and scrutiny from federal investigators, CNBC reports.
Given that Apple News is already pre-installed on iPhones, any potential news content that must be published on the platform must conform to its unique interface. Apple said about 125 million monthly active users use its Apple News service, and that this statistics is responsible for 21% of Apple’s sales revenue in the new quarter.
For app developers or content providers who want to be part of the new Apple News platform and enjoy a 15% fee reduction on the Apple Store, they confirm to certain requirements. First, they must apply to become part of the News Partners Program. The providers’ news articles must also be formatted in the ANF format, and they must contain necessary metadata for better optimization. The providers must also operate from countries where Apple News is available – and top among these are the US, the UK, Canada, and Australia.
The application portal where interested providers can apply for the program has been open on Apple’s website since Thursday.
According to Apple, providers will enjoy the 15% commission within the first year for subscriptions customers make on the providers’ dedicated app and through the Apple News platform. Publishers with paywalls on their apps will also be able to use paywalls on Apple News without issues.
This is not the first time that Apple would be reducing its App Store fees to 15%. In 2020, companies earning less than $1 million annually in net sales from Apple could get the 15% if they were enrolled in the App Store Small Business Program. Just like Amazon, video providers can also apply to another Apple program and earn 15% if they integrate their apps with Siri and other Apple features.
Apple said the revenue boost will help publishers earn more while enabling customers to access quality news sources from their mobile devices. The company said human editors have been employed to curate the news materials on its Apple News feed and that this will enable customers to access the most appropriate news items possible based on their preferences.