Apple executives talked about not ‘leaving money on the table’ when deciding Apple TV subscription costs

Emails from Apple executives involved in the Epic Games vs. Apple were unveiled, showing how the company concluded to cut 30% on all App Store transactions in a way that kept it from “leaving money on the table.”

A 2011 email thread spotted by The edge, says Eddy Cue, head of Apple Services, discussing the commission the company should charge suppliers for subscriptions to content accessible through Apple TV (an “App Store” on the set-top box didn’t exist at the time). discount, a one-time discount of 30%, a continuous fee of 30% or individualized deals with different providers.

The Apple team eventually decided to demand the same 30% cost as for the iTunes Store and the App Store. Another email also discusses how Apple should negotiate referrals, with Apple TV apps linking to a provider’s website so customers can subscribe directly to the service.

One executive said they wanted to make sure they protected the 30% fee that had long been set in the ‌App Store‌, but said they would remain open to other deal structures.

“I don’t want to close deals where we get less than 30%. That’s what it is in the app store and we can’t make another deal here. If that’s not possible then I want a one-time bounty, but we have to be very careful here so that this doesn’t spill over to the app store, ”wrote one exec. (The emails are threaded so it’s hard to tell who is replying to whom.)

Overall, the email thread seems to suggest that the discussions arose spontaneously between Apple executives when it came to carrier fees during the early development of the Apple TV platform, with maximum profit being the main concern.

Amid mounting criticism of its “App Store” practices, Apple announced the Small Business Program in November, cutting “App Store” fees to just 15% for developers making less than a million dollars per calendar year. The ‌‌App Store‌‌ commission remains 30% for developers making more than a million dollars a year.

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