Apple "discounts" video providers, or will see more movies on Apple TV

According to Bloomberg News on November 16, Apple plans to reduce the cost of accessing the App Store video service from 30% to 15%, which means that video service providers' operating costs on Apple's platforms will be significantly reduced.

At present, Apple declined to comment on this.

It is reported that there have been a small range of video service providers before the trial of this offer, this time Apple will expand this service to all video providers on the platform. But the premise is that they agree to be connected to Apple's new TV app.

Apple's new TV app (officially known as tvOS) is a new cross-platform video service for users. By integrating different devices and diversified video services, users do not have to switch back and forth between different apps. They just need to have a “one-stop experience” of watching within the TV app. Apple had also planned to develop its own TV live broadcast service, but suffered from restrictions on program production and playing rights, and the plan was once grounded.

"Since starting from the stove" has failed, Apple can only "curve save the country."

By connecting the content of other video service providers to TV apps such as Hulu, Showtime and HBO, Apple can solve the content supply problem. But for these content providers, access to the Apple platform requires payment, which means that their subscription services on the Apple platform are more expensive than elsewhere. For example, Google’s YouTube Red audio and video subscription service sells for $12.99/month on iPhones and iPads, and only $9.99/month elsewhere.

Therefore, this active "discount" is a good news for these content providers who want to expand their business on Apple's platform. Based on the user base of Apple's various platforms, the reduction in access costs will undoubtedly bring greater benefits.

For Apple, this is obviously not a loss-making business. Reduced access fees will likely attract more content providers to join, which will provide TV apps with richer content and attract more users. Netflix, which had not appeared in the TV app's starting lineup before, is uncertain whether it will join the Apple camp again because of this "price cut", but this may be a big boost.

App Store and value-added service revenues are new growth points that Apple has high hopes for. Apple, which has been relying on hardware sales revenues, has recently experienced a decline in iPhone sales, and Apple has turned to the app store and other value-added services including Apple Music and iCould. According to statistics, Apple’s value-added service sales increased by 22% in the previous fiscal year to US$24 billion, making it the fastest growing business unit.

The title map comes from: LifeWire

Illustration from: Apple, YouTube

[This article comes from the Tencent News client from the media, does not represent the views and positions of Tencent News. 】

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