Apple considered taking 40% cut from subscriptions, emails show
Apple Inc. executives almost a decade ago considered taking a cut of 40% from some third-party subscriptions accessed through its platform, emails shared by the House Judiciary Committee on Wednesday show.
In a March 2011 email to three executives, Apple services chief Eddy Cue said the company “should ask for 40% of the first year only but we need to work a few deals to see what is right.”
One of the other executives, Jai Chulani, wrote that Apple “may be leaving money on the table if we just asked for about 30% of the first year” of subscriptions.
The emails were referring to digital content apps, such as those offered by sports leagues and Hulu, the video-streaming service. The discussion was also related specifically to the Apple TV set-top box and it's unclear if this applied to apps running on the iPhone and iPad as well.
Apple has taken a 30% cut from app subscriptions since launching the feature several years ago. It recently dropped that fee to 15% after the first year. The company's App Store rules and fees have been criticized by some regulators and developers this year.
During congressional testimony on Wednesday, Apple Chief Executive Officer Tim Cook said the company's App Store fees are competitive and noted there are many rivals trying to woo mobile developers and consumers.