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January 26, 2021 06:04 pm

Apple Execs Discussed Not 'Leaving Money on the Table' When Setting Apple TV Subscription Fees

In Apple and Epic's ongoing court battle over App Store fees, one of the key sticking points has been Apple's insistence on maintaining a 30 percent cut as a cornerstone of the storefront. But newly revealed Apple executive emails from the case show that the App Store rules that Apple flouts as essential to the fairness of the app economy were carefully negotiated into existence over time in a way that ensured Apple wasn't "leaving money on the table." From a report: The emails date back to a 2011 discussion, which included Apple software and services leader Eddy Cue, around how Apple would handle subscription video applications on the Apple TV -- an important conversation, given the rise in popularity of streaming services. And while the discussion doesn't offer much insight on Apple's existing 30 percent fee for the App Store, it does reveal how malleable those rules were when it came to maximizing profit. The company examined a variety of options, including a 40 percent one-time cut, a 30 percent one-time cut, a 30 percent ongoing fee, or more individualized deals with services like the NBA and MLB.

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