Apple executives discussed not “leaving money on the table” when deciding on Apple TV subscription fees

Apple executives’ emails revealed in the Epic Games vs. Apple highlights how the company came to its conclusion to reduce all transactions in the App Store by 30% in a way that ensured that it did not “leave money on the table”.

An e-mail from 2011, noticed by The Verge, introduces Apple’s head of services, Eddy Cue, who discusses the commission the company should charge suppliers for content subscriptions accessed via Apple TV (an “App Store” on the set-top box did not exist at the time.) – time reduction, one-time discount of 30%, a continuous fee of 30% or individualized offers with different suppliers.

The Apple team finally decided to charge the same 30% fees as for the iTunes Store and the “App Store.” Another email also discusses how Apple should negotiate recommendations, where “Apple TV” apps connect to a vendor’s website for customers to subscribe directly to the service.

An executive said he wants to make sure he protects the 30% commission that has long been enshrined in the “App Store”, but said they will remain open to other trading structures.

“I don’t want to make offers in which we get less than 30%. This is in the app store and we can’t do another business here. If this is not possible than I want one … reward of time, but we must be very careful here so that this does not spill into the app store, “wrote one executor. (Emails are in the form of topics, so it’s hard to tell who’s answering.)

Overall, the email seems to suggest that discussions have evolved untimely among Apple executives regarding vendor fees, during the early development of the “Apple TV” platform, with maximum profit, the main concern.

Amid increased control over its App Store practices, Apple announced the Small Business Program in November, which saw App Store fees cut to just 15 percent for developers earning less than $ 1 million. per calendar year. The “App Store” commission remains at 30% for developers who earn over one million dollars a year.

Since then, the program has received praise from many developers, but some larger developers, including Epic Games, have criticized the move, saying it undermines the “App Store” rules. The “Epic Games” are not eligible for the low commission because they exceed the $ 1 million payout threshold. Apple said the program will benefit the “vast majority” of App Store developers.