Apple plans to take smaller cut of App Store sales

Since the beginning of iOS, Apple has taken 30 per cent of all revenue from app sales and subscriptions, but this might change now Apple is planning to launch its own music streaming service.

Rumors claim Apple plans to lower the subscription tax or remove it altogether, to avoid regulators looking into anticompetitive measures put in place against apps like Spotify and Tidal.

Already, both Spotify and Tidal offers their premium service for £12.99 on iOS, but £9.99 on the web. The 30 per cent tax can be seen in other places, like Netflix for iOS, something Apple would need to change if it launches a video streaming service.

In terms of the 30 per cent for app sales, we expect Apple will keep it the same. The deal seems decent for most app developers even if other mobile platforms offer better rates for uploading content onto the store.

iOS is still the revenue king, with revenue per user much higher than Android. Developers would be mad to turn down iOS when building a mobile app even if Android has a larger userbase or an unorthodox choice like Windows Phone offers better revenue split.

Apple plans to announce the new music service at the Worldwide Developer Conference later today. The music service will include exclusive artists and album deals, alongside other content relating to the artist.

iTunes Radio is also expected to relaunch at WWDC 2015, adding new radio stations and guest stations from Drake, Pharrell and David Guetta.