Apple (NASDAQ:AAPL) Gets 30 Percent Cut of iTune Content Sales

Apple (NASDAQ:AAPL) introduced their new content subscription service for their iTunes store, and anyone wanting to sell content via the service will pay Apple a nifty 30 percent for the privilege.

It isn't a closed service, as customers can use the website of businesses to order content, or order through an Apple app. For one they get the full fee, and from Apple they get 70 percent.

Where this will leave companies like Hulu and Netflix (NASDAQ:NFLX) remains to be seen, but it's sure to put a lot of pressure on them over time, especially the publicly-traded Netflix, which is migrating to a digital content delivery business model.

In the past, Apple has allowed companies to build applications for devices where they didn't take a cut of the revenue; those days are evidently now over.

Apple CEO Steve Jobs said, "When Apple brings a new subscriber to the app, Apple earns a 30 percent share; when the publisher brings an existing or new subscriber to the app, the publisher keeps 100 percent and Apple earns nothing."

Even so, Apple says those wanting to sell subscriptions through Apple must offer terms that are at least equal with what is offered via subscriptions offered via iTunes. Apple also insists the option to buy subscriptions within iTunes must also be offered.

"We believe that this innovative subscription service will provide publishers with a brand new opportunity to expand digital access to their content onto the iPad, iPod touch and iPhone, delighting both new and existing subscribers," added Jobs.

In order to protect the privacy of individuals, subscribers are offered the option of whether or not to share information with companies they subscribe with. Apple says they won't pass that on to third parties, although Apple will retain their hold on it.

Apple closed Tuesday at $359.90, gaining $0.72, or 0.20 percent. Netflix closed at $240.79, losing $6.76, or 2.73 percent.