Apple executives discuss not ‘leaving money on the table’ when deciding on Apple TV subscription fees

Apple Executive Emails Revealed in Epic Games Vs. Apple highlights how the company came to the conclusion that it cut 30% on all App Store transactions in a way that ensured it did not “leave money on the table”.

A 2011 email topic, identified by The Verge, introduces Apple’s head of services, Eddy Cue, discussing the commission the company should charge providers for content subscriptions accessed via Apple TV (an “App Store” on the set-top box did not exist at the time). Apple executives considered charging 40% – reduction in time, one-time reduction of 30%, continuous rate of 30% or individualized deals with different suppliers.

The Apple team eventually decided to demand the same 30% fees that they charge on the iTunes Store and the ‌App Store‌. Another email also discusses how Apple should negotiate referrals, in which “Apple TV” apps are linked to a provider’s website for customers to subscribe directly to the service.

An executive said he wanted to ensure protection from the 30% fee that had long been enshrined in the ‌App Store‌, but said it would remain open to other business structures.

“I don’t want to do business where we receive less than 30%. That’s what’s in the app store and we can’t do a different deal here. If that is not possible, then I want one. generous time, but we need to be very careful here so that it does not spread to the app store, “wrote an executive. (E-mails are grouped in a way that it is difficult to say who is responding to whom.)

Overall, the topic of email seems to suggest that discussions have evolved out of time among Apple executives when it came to provider fees during the initial development of the “Apple TV” platform, with maximum profit being the main concern.

Amid increasing scrutiny of its ‌App Store‌ practices, Apple announced in November the Small Business Program, which saw ‌‌App Store‌‌ rates cut to just 15% for developers earning less than $ 1 million a year. civil year. The ‌‌App Store‌‌ commission remains at 30% for developers who earn more than one million dollars a year.

The program has since received praise from many developers, but some larger developers, including Epic Games, have criticized the move, saying it undermines the rules of the ‌‌App Store‌‌. ‌Epic Games‌ does not qualify for the reduced commission as it exceeds the $ 1 million win limit. Apple said the program will benefit the “vast majority” of ‌App Store‌ developers.