Apple may be forced to cut its 30% transaction fee on in-app subscriptions

Apple may be forced to cut its 30% transaction fee on in-app subscriptions Apple seems to be in trouble with the 30% transaction fees that it charges businesses selling their apps on the App Store and iTunes. The company may be forced to cut this practice very soon, denting a big revenue spinner for the company. The Apple story is our top highlight in this week's subscription roundup. Next, we look at another subscription giant Netflix which is ramping up content production across Europe. Netflix has also got the attention of Ofcom which has asked traditional UK networks to pool their streaming resources to counter the rise of SVOD services from the US. In addition, Canadian regulators are looking to support ailing media companies by allowing tax credit to citizens which will cover online news subscriptions for 2 months. Also, Spotify seems to be in expansion mode as it looks at India to drive its next phase of growth. And lastly, we look at YouTube which is offering discounted streaming services to students. 

Will Apple’s 30% transaction fee on app subscriptions be history soon?

According to a recent development, the US Supreme Court may allow an antitrust lawsuit to move forward against Apple. This may force the Cupertino giant to cut the 30 percent transaction fee it charges businesses that sell apps on its platform. The move comes at a wrong time for Apple as the company is increasingly looking at services as its revenue driver in the future. Apple’s tight price control has given rise to an app marketplace that is a big cash cow for the company. If the court rules against Apple, it will be forced to forego a sizeable chunk of its revenue, which may not exactly be music for the Wall Street!
 
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Netflix wants to ramp up content production in Europe

Subscription streaming giant Netflix wants to increase the content it produces across Europe in 2019. The company has lined up 141 projects, including 81 original productions. Netflix’s ‘going local’ strategy with originals has worked very well in markets such as India and it looks like it wants to replicate the same success across multiple markets. However, this will alarm traditional European broadcasters who are anyway struggling with the onslaught of SVOD services.
 
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Ofcom asks traditional UK broadcasting networks to unite against the likes of Netflix

UK’s broadcasting regulator Ofcom has asked traditional broadcasting networks to pool their streaming resources to compete against popular US-based streaming services. Ofcom chief executive Sharon White has called for a combined ‘Brit Player’ which brings the four core UK networks including the popular BBC iPlayer together. Last year, Ofcom had reported that subscription streaming services had taken over traditional Pay TV networks for the first time ever. BBC had also publicly acknowledged that British TV is under threat from SVOD services.
 
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New Canadian tax credit regulation to incentivise subscriptions to media houses

In a bid to encourage the bleeding media industry, the Canadian government is offering a tax credit which will cover two months of subscriptions to news sites and encourage subscribers to sign up for these services. The tax credit will roughly save 15% of the total subscription cost for users. The move is an effort by regulatorsto help the country’s media organisations transition to a more sustainable business model.
 
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Spotify to launch in India within six months?

Music streaming giant Spotify has reportedly struck deals with many record labels and right holders and could be eyeing at an India launch within the next six months. According to reports, Spotify may offer an extended free trial period in India to lure subscribers. Incidentally, Spotify launched its services in the UAE earlier this month.
 
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YouTube to offer discounted subscription services to students

In a bid to attract students, YouTube is offering massive discounts on its subscription platforms. Students can gain access to YouTube Premium for $6.99 per month compared to the regular $12.99 plan, whereas YouTube Music will be available for $4.99 instead of $9.99. This may work well to attract more subscribers to its fold as YouTube tries to propel its twin subscription streaming services into the big league.
 
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Also read: Mexico City is the music streaming capital according to Spotify