Amazon Prime Video and other Internet content services should no longer pay the so-called “Apple tax” for product sales through the Cupertino firm’s digital platforms, according to a report by Bloomberg.
The “Apple Tax” mandates any content vendor through iTunes or the App Store to pay the company 30 percent of any transaction. According to the report, Amazon Prime Video, Altice One and Canal + are some of the companies that now enjoy this privilege.
“Apple has an established program with different benefits for entertainment video providers premium“the company explained to Bloomberg, adding that other benefits of the program are access to integration with the Apple TV app, AirPlay 2 support, universal search, Siri support and the option of not logging in repeatedly.
The elimination of the payment allows companies to obtain full income from the sale or rental of series or movies. According Bloomberg, this program – as Apple describes it – has been in operation since 2018. The three companies mentioned – at least – can already sell their content through Apple’s platforms without paying that fee, although the characteristics for which another is unknown are unknown. Similar content provider (like Netflix) may be part of the new provision.
This 30 percent charge is one of Apple’s most criticized practices, with Spotify being the entity that most recently raised its voice to complain. The music platform by streaming, which must pay Apple 30 percent of each subscription made from the iOS app,. Apple and Spotify went into litigation over those allegations.
Apple did not mention BloombergHowever, if this program could affect your income from services, ranging from subscriptions to Apple Music, iCloud and the sale of apps in the App Store, to, of course, 30 percent of the charges to sellers of services. Apple said in its first quarter 2020 tax report, reported in January of that year, that service revenue reached a record $ 12.715 million.