Apple Lowers Commissions for News Publishers | Apple News

Apple Announces New Commission Structure for News Publishers

Today, Apple unveiled a new program designed for subscription-based news organizations. Participating organizations within the Apple News app, meeting specified criteria, will see their commission rate reduced to 15% on eligible in-app purchases made through the App Store.

Standard Commission Rates and the New Program

Traditionally, Apple’s subscription model levies a 30% commission during a developer’s initial year on the App Store, decreasing to 15% in subsequent years. However, the newly announced Apple News Partner Program immediately establishes a 15% commission rate for qualifying participants.

Program Requirements and Technical Specifications

Certain conditions must be met to qualify for the reduced commission. News publishers are required to maintain an active presence on Apple News and deliver their content utilizing the Apple News Format (ANF).

Understanding the Apple News Format

The ANF is a JavaScript Object Notation (JSON) format optimized for display across Apple devices, including Macs and iPhones. Translating articles from a publisher’s website or Content Management System (CMS) to this JSON format is typically necessary.

Fortunately, plugins are available for popular CMS platforms like WordPress to streamline this conversion process.

Alternative for International Publishers

Publishers based outside the U.S., U.K., Australia, or Canada can fulfill program requirements by providing Apple with a standard RSS feed.

App Store Requirements for Commission Reduction

To qualify for the 15% commission on the App Store, partner apps must deliver “original, professionally authored” news content. Furthermore, they must utilize Apple’s in-app purchase system for all auto-renewable subscriptions.

Existing Apple News Participation and Future Implications

Many major publishers already engage with Apple News, minimizing the additional effort required to benefit from the reduced commission. This program incentivizes continued participation within the Apple News ecosystem.

However, this reliance on the Apple ecosystem may be a point of contention for some publishers.

Concerns Regarding Ecosystem Dependence

Some publishers have expressed concerns about relinquishing control over their business by becoming closely tied to Apple News. For instance, The New York Times previously exited its partnership, citing a desire for a more direct relationship with its readership.

Apple’s Perspective on Publisher Relationships

Apple maintains that it does not impede publisher businesses, allowing them to implement paywalls and retain 100% of their direct ad revenue. If Apple manages ad sales, publishers receive 70% of the resulting revenue.

Additionally, revenue generated through Apple News+ is considered supplemental income, as it reaches customers publishers may not have accessed independently.

Regulatory Context and Proactive Measures

The launch of the Apple News Partner Program coincides with increased regulatory scrutiny regarding App Store practices and proposed legislation addressing potential anticompetitive behavior in the U.S. and other key markets, such as South Korea.

Apple has proactively adjusted its App Store commissions to mitigate potential antitrust concerns.

The App Store Small Business Program

Last year, the App Store Small Business Program lowered commissions to 15% for developers earning up to $1 million annually.

Industry Response and Advocacy Groups

While beneficial for smaller publishers, larger organizations remained dissatisfied. Following the launch of the Small Business Program, several major publishers joined the Coalition for App Fairness (CAF) and the trade organization Digital Content Next (DCN).

Publisher Demands Beyond Commission Rates

These publishers previously appealed to Apple CEO Tim Cook, requesting lower commissions and objecting to the mandatory use of Apple’s in-app purchase system, which they view as increasing costs for consumers.

Looking Ahead: Publisher Reactions and Program Impact

The response of these publishers to the Apple News Partner Program remains to be seen. While it offers a pathway to reduced fees, it does not address their broader concerns regarding Apple’s platform policies.

The program may further solidify their dependence on the Apple ecosystem.

Supporting Media Literacy Initiatives

In addition to the program launch, Apple announced renewed support for media literacy nonprofits, including Common Sense Media, the News Literacy Project, and Osservatorio Permanente Giovani-Editori. These organizations provide nonpartisan media literacy education.

Apple did not disclose the financial details of its commitment.

Statement from Apple’s Senior Vice President of Services

“Providing Apple News customers with access to trusted information from our publishing partners has been our priority from day one,” stated Eddy Cue, Apple’s senior vice president of Services. “We have hundreds of news apps…available in the App Store, and created Apple News Format to offer publishers a tool…”

Program Details and Application Information

Further details about the program and the application form can be found on the News Partner Program website.