Apple will be lowering its 30% “Apple Tax” for app developers

Apple is planning a departure from the pricing formula that has defined the economics of digital media for a decade in a change that would cut the 30 per cent fee that media companies pay on subscriptions. The iPhone maker is discussing new commercial terms with media companies, people familiar with the matter said, to alter the 70/30 “Apple tax” pioneered by Steve Jobs when its late founder launched the iTunes music store in 2003. The improved terms being discussed with media companies would apply to revamped Apple platforms such as its long-anticipated TV update and forthcoming changes to Newsstand, its gateway to digital newspapers and magazines, rather than to its existing App Store terms, which will remain the same for developers, according to people close to the discussions. Changing Apple’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 most lucrative digital marketplaces.