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

Apple executive emails revealed in the Epic Games vs. Apple lawsuit highlight how the company came to its conclusion to take a 30% cut on all App Store transactions in a way that ensured it wasn't "leaving money on the table."

app store blue banner
One email thread from 2011, spotted by The Verge, features Apple services chief Eddy Cue discussing the commission that the company should charge providers for content subscriptions accessed via Apple TV (an ‌App Store‌ on the set-top box didn't exist at the time.) Apple execs considered charging a 40% one-time cut, a 30% one-time cut, a 30% ongoing fee, or individualized deals with different providers.

apple tv deal
Apple's team eventually decided to require the same 30% fees as it does on the iTunes Store and the ‌App Store‌. Another email also discusses how Apple should negotiate referrals, where ‌Apple TV‌ apps link out to a provider's website for customers to subscribe directly to the service.

apple tv deal 1
One executive said they wanted to ensure they protected the 30% fee that had long been enshrined in the ‌App Store‌, but stated they would remain open to other deal structures.

"I don't want to do any deals where we get less than 30%. That is what it is on the app store and we can't be making a different deal here. If that is not possible than I want a one-time bounty but we need to very careful here so this doesn't spillover to the app store," one exec wrote. (The emails are threaded such that it's hard to tell who is replying to whom.)

Overall, the email thread appears to suggest that discussions evolved extemporaneously amongst Apple executives when it came to provider fees during the early development of the ‌Apple TV‌ platform, with maximum profit the main concern.

Amid increasing scrutiny over its ‌App Store‌ practices, Apple in November announced the Small Business Program, which saw ‌‌App Store‌‌ fees slashed to just 15% for developers earning under one million dollars per calendar year. The ‌‌App Store‌‌ commission remains at 30% for developers making over one million dollars per 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's rules. ‌Epic Games‌ is ineligible for the reduced commission since it exceeds the $1 million earnings threshold. Apple said the program will benefit the "vast majority" of ‌App Store‌ developers.

Related Roundup: Apple TV
Buyer's Guide: Apple TV (Don't Buy)

Popular Stories

2024 iPhone Boxes Feature

Apple Adjusts Trade-In Values for iPhones, iPads, Macs, and More

Thursday November 6, 2025 11:12 am PST by
Apple today updated its trade-in values for select iPhone, iPad, Mac, and Apple Watch models. Trade-ins can be completed on Apple's website, or at an Apple Store. The charts below provide an overview of Apple's current and previous trade-in values in the U.S., according to its website. Maximum values for most devices either decreased or saw no change, but the iPad Air received a slight bump. ...
Liquid Glass General Feature

Apple Shares Liquid Glass Design Gallery

Thursday November 6, 2025 2:45 pm PST by
Apple is promoting the new Liquid Glass design in iOS 26, showing off the ways that third-party developers are embracing the aesthetic in their apps. On its developer website, Apple is featuring a visual gallery that demonstrates how "teams of all sizes" are creating Liquid Glass experiences. The gallery features examples of Liquid Glass in apps for iPhone, iPad, Apple Watch, and Mac. Apple...
airtag purple

Apple's Website Lists AirTag 4-Pack at Shockingly Low Price [Updated]

Friday November 7, 2025 6:40 am PST by
Apple's online store in the U.S. is suddenly offering a pack of four AirTags for just $29, which is the same price as a single AirTag. This is likely a pricing error, and it is unclear if orders will be fulfilled. Apple has not discounted the AirTag four-pack in any other countries that we checked. Delivery estimates are already pushing into late November to early December, suggesting...
iOS 26

iOS 26.1 Available Now With These 8 New Features

Monday November 3, 2025 5:54 am PST by
Following more than a month of beta testing, Apple released iOS 26.1 on Monday, November 3. The update includes a handful of new features and changes, including the ability to adjust the look of Liquid Glass and more. Below, we outline iOS 26.1's key new features. Liquid Glass Toggle iOS 26.1 lets you choose your preferred look for Liquid Glass. In the Settings app, under Display...
ikea smart home devices

IKEA Debuts 21 HomeKit-Compatible Smart Bulbs, Sensors, and Controls

Thursday November 6, 2025 4:08 pm PST by
IKEA today announced the upcoming launch of 21 new Matter-compatible smart home products that will be able to interface with HomeKit and the Apple Home app. There are sensors, lights, and control options, all of which will be reasonably priced. Some of the products are new, while some are updates to existing lines that IKEA previously offered. There are a series of new smart bulbs that are...
Early Black Friday Deals 1

The Best Early Black Friday Apple Deals on MacBook, Apple Watch, iPad, and More

Saturday November 8, 2025 6:16 am PST by
We're officially in the month of Black Friday, which will take place on Friday, November 28 in 2025. As always, this will be the best time of the year to shop for great deals, including popular Apple products like AirPods, iPad, Apple Watch, and more. In this article, the majority of the discounts will be found on Amazon. Note: MacRumors is an affiliate partner with some of these vendors. When ...
Apple fitness plus feature

Future of Apple Fitness+ 'Under Review'

Sunday November 9, 2025 5:30 am PST by
The future of Apple Fitness+ is "under review" amid a reorganization of the service, according to Bloomberg's Mark Gurman. In the latest edition of his "Power On" newsletter, Gurman said that Apple Fitness+ remains one of the company's "weakest digital offerings." The service apparently suffers from high churn and little revenue. Nevertheless, Fitness+ has a small, loyal fanbase that...
maxresdefault

In-Depth iPhone Battery Experiment Pits Slow Charging Against Fast Charging

Friday November 7, 2025 1:19 pm PST by
HTX Studio this week shared the results from a six-month battery test that compared how fast charging and slow charging can affect battery life over time. Using six iPhone 12 models, the channel set up a system to drain the batteries from five percent and charge them to 100 percent over and over again. Three were fast charged, and three were slow charged. Another set of iPhones underwent...
apple watch se 3 always on

Apple to Remove iPhone-Apple Watch Wi-Fi Sync in EU With iOS 26.2

Thursday November 6, 2025 4:37 am PST by
Apple in iOS 26.2 will disable automatic Wi-Fi network syncing between iPhone and Apple Watch in the European Union to comply with the bloc's regulations, suggests a new report. Normally, when an iPhone connects to a new Wi-Fi network, it automatically shares the network credentials with the paired Apple Watch. This allows the watch to connect to the same network independently – for...

Top Rated Comments

InGen Avatar
63 months ago
Are there any For-Profit companies that centre their decision making around leaving money on the table?

Breaking news: Companies that survive based on profit discussing making as much profit as possible.
Score: 50 Votes (Like | Disagree)
Dwalls90 Avatar
63 months ago

30% itself is way too high....
You should see the markup on tangible products to wholesalers or wholesalers to retailers.

EDIT: For the sake of clarity, the average markup of a wholesaler or manufacturer to a retailer or wholesaler is 20-40%. Apple is charging 30% by acting as a middleman. If you reject Apple's 30%, I suggest you reject every retailer where you purchase any services or goods from.
Score: 23 Votes (Like | Disagree)
robjulo Avatar
63 months ago
We love our customers!
Score: 22 Votes (Like | Disagree)
casperes1996 Avatar
63 months ago
Forget what the emails actually say. Look at how it's written! That's appalling! It's not properly capitalised! Noteworthy is that "the App Store" isn't even capitalised! And my Mac just automatically capitalised it for me as I wrote it here so there's no excuse for that. And there's even a word missing. "we need to very careful here". "be". Please write full sentences when you're an exec writing emails like this... And "than" is comparative. "Then" is the word you wanted there. God damn
Score: 16 Votes (Like | Disagree)
Kabeyun Avatar
63 months ago
So Apple leadership is figuring out how much to charge for something, and they go with their existing standard fee that’s also in line with the rest of the market. Is there supposed to be some sort of smoking gun here?
Score: 14 Votes (Like | Disagree)
genovelle Avatar
63 months ago

30% itself is way too high....
Who gets to decide that. Funiture and clothing have 300 and 400 percent markups. Jewelry too. Apple is successful because they generally require a 35% profit margin to release anything and to do a few things very well. They strayed from this while Jobs was in exile and nearly went out of business. Most of their competitors from that era no longer exist.

30 percent is actually much lower if you look at their costs. They manage the support, they eat the 3% credit card processing fees, they host the apps in cloud, they provide free marketing and drive the platform via ads and other methods, they maintain the platform, with constant and consistent updates to APIs and security. They protect companies from piracy that plagues other platforms, and keeps them from being run out of business.
Score: 11 Votes (Like | Disagree)