Apple Execs Discusses That They Should Not ‘Leave Money on the Table’ When Deciding on Apple TV Subscription Fees

Apple’s executive emails that appeared in the Epic Games vs. Apple case unveiled highlights how the company came to the conclusion to take a 30% cut on all App Store transactions in a way that ensures it does not ‘leave money on the table’.

One email thread from 2011, spotted by The edge, Apple’s head of services, Eddy Cue, discussed the mandate for the company to charge providers for content subscriptions obtained through Apple TV (an ‌App Store‌ on the set-top box was not available at the time). time cuts, a one-time cut of 30%, a running fee of 30% or individual transactions with different suppliers.

Apple’s team finally decided to charge the same 30% fees as in the iTunes Store and the ‌App Store‌. Another email also discusses how Apple should negotiate referrals, where ‘Apple TV’ programs link to a provider’s website so customers can subscribe directly to the service.

One executive said they want to ensure that they protect the 30% fee that has long been captured in the ‘App Store’, but declare that they will remain open to other transaction structures.

“I do not want to do any transactions where we get less than 30%. That’s what it’s in the app store and we can ‘t make another deal here. If that’s not possible, I want a one-time deal. “But we have to be very careful here so that it does not spread to the app store,” wrote one driver.

Overall, it seems that the email thread suggests that discussions among Apple executives during the early development of the Apple TV platform, with maximum profit the biggest concern, developed rapidly.

Amid increasing research on its ‌App Store‌ practices, Apple announced the Small Business program in November, which means that the fees of ‌‌App Store‌‌ have been reduced to 15% for developers earning less than one million dollars per calendar year. The ‌‌App Store‌‌ commission remains at 30% for developers earning more than one million dollars a year.

The program has since received praise from many developers, but some major developers, including Epic Games, have criticized the move, saying it undermines the rules of the ‌‌App Store‌‌. PEpic Games‌ is not eligible for the reduced commission because it exceeds the $ 1 million earnings threshold. Apple said the app would benefit the “vast majority” of App Store developers.