Apple to Rewrite App Store Economics for Media

Financial Times: Apple plans a departure from the pricing formula that has defined the economics of digital media for a decade, which would cut the 30 percent fee music, video and news companies pay on subscriptions through its App Store. The iPhone maker is said to be discussing new commercial terms with media companies to change the 70/30 “Apple tax” pioneered by Steve Jobs when its late founder launched the iTunes music store in 2003. Changing the App Store’s terms of trade could improve the economics of online content businesses and reassure regulators that the company is not abusing its position as gatekeeper to one of the world’s most lucrative digital marketplaces.