Apple Collects 15% of Revenue Generated From HBO NOW and Other Apple TV Apps
While the terms of the Apple-HBO partnership behind the launch of the HBO NOW streaming TV service on Apple TV last month have not been disclosed, Re/code reports that some Apple TV content providers, including Netflix, Hulu Plus and MLB.TV, provide Apple with 15% of revenue generated from monthly fees for subscribers that sign up through the set-top box.

Apple collects 30% of revenue generated from the sale of iPhone, iPad and iPod touch apps, including in-app purchases, so the commission for Apple TV apps is half the amount developers are forced to hand over through the App Store. While the difference does not make a difference for consumers, the lower cut could make Apple TV a more attractive platform for HBO and other cable channels.
"But it’s even more interesting to think about Apple’s tiers of fees as we enter a world where lots of people are going to be selling Web video subscription products via platforms like Apple’s. Whether Apple is charging 15 percent or 30 percent a month, it’s giving distributors a much better deal than the 50 percent that pay TV providers usually charge premium networks like HBO. That makes the platform even more enticing to cable channels that are thinking about stepping outside of the traditional pay TV bundle — and it puts more pressure on the cable guys to sweeten the deals they already offer."
The report adds that HBO is in negotiations to reach HBO NOW distribution deals with its existing pay TV distributors, enabling them to sell the service to their existing subscribers as an add-on. HBO is said to already have a deal in place with Cablevision and is reportedly in talks with Cox and Verizon as well. HBO NOW is exclusive to the Apple TV among streaming boxes for three months, at which point it should expand to other devices and platforms.
Popular Stories
Apple says iOS 16.4 is coming in the spring, which began this week. In his Sunday newsletter, Bloomberg's Mark Gurman said the update should be released "in the next three weeks or so," meaning a public release is likely in late March or early April.
iOS 16.4 remains in beta testing and introduces a handful of new features and changes for the iPhone. Below, we have recapped five new features ...
Apple is tracking the attendance of its employees at offices using badge records in order to ensure they are coming in at least three times a week, according to Platformer's Zoë Schiffer.
Since April 2022, Apple employees have been operating on a hybrid home/office work policy as part of a gradual return strategy following the pandemic, with staff required to work from the office at least...
While the iPhone 15 series is still around six months away from launching, there have already been plenty of rumors about the devices. Many new features and changes have been rumored for the iPhone 15 Pro and iPhone 15 Pro Max in particular.
Below, we have recapped 10 changes rumored for iPhone 15 Pro models that are not expected to be available on the standard iPhone 15 and iPhone 15 Plus:A1...
This year, all iPhone 15 models will include Apple's Dynamic Island that unifies the pill and hole cutouts at the top of the display, but there will also be a material change to the feature that wasn't included in the iPhone 14 Pro models.
According to a new tweet by Apple industry analyst Ming-Chi Kuo, the proximity sensor on the iPhone 15 series will be integrated inside the Dynamic Island ...
Nothing today announced the launch of its second-generation wireless earbuds, the Nothing Ear (2), which offer many of the same features as Apple's AirPods Pro 2 at a lower price point. We went hands-on with the Ear (2) earbuds to see whether they're a viable alternative to the AirPods Pro 2 for those who want to save some cash.
The Ear (2) earbuds are the successor to the Nothing Ear (1),...
The iOS 16.4 update that is set to be released to the public in the near future includes voice isolation for cellular calls, according to notes that Apple shared today.
Apple says that Voice Isolation will prioritize your voice and block out the ambient noise around you, making for clearer phone calls where you can better hear the person you're chatting with and vice versa.
Voice...
Apple is no longer allowing customers who purchase an iPhone, cellular iPad, or Apple Watch to activate a device with now-defunct mobile carrier Sprint. Apple has also removed remaining references to Sprint from its online store.
When checking out with a new purchase, Sprint is no longer an option for connectivity, a change that Apple appears to have implemented today. Prior to now, Sprint...
The iOS 16.4 release candidate version that was provided to developers today appears to hint at a new set of AirPods that could be coming in the near future. According to @aaronp613, the beta features references to AirPods that have a model number of A3048 and an AirPods case with a model number of A2968.
There have been no rumors that new AirPods are on the horizon, and it is early for...
Top Rated Comments
----------
Exactly what people with cable or satellite can do now
I also have been much more inclined to sign up for HBO, Netflix, and Hulu through Apple due to how easy it is to cancel at will. THAT is great customer service unlike the traditional providers.
They charge $17.99 a month through DirecTV.
Since you can subscribe to HBO NOW by the month, I can well imagine many users choosing to subscribe to NOW for 1-2 months only and binge-watch recent exclusive content.
Seriously? It says right there in the article how Apple got HBO on board: "Whether Apple is charging 15 percent or 30 percent a month, it's giving distributors a much better deal than the 50 percent that pay TV providers usually charge premium networks like HBO"
It's cheaper than $15 if you can use discounted iTunes gift cards.