Apple Execs Discussed Not 'Leaving Money on the Table' When Deciding Apple TV Subscription Fees - MacRumors
Skip to Content

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

apple tv 4k new orange

tvOS 26.4 Adds These New Features to Your Apple TV

Wednesday March 25, 2026 3:33 pm PDT by
Apple this week released tvOS 26.4, and the software update includes a handful of new features and changes for the Apple TV. tvOS 26.4 is compatible with all Apple TV 4K and Apple TV HD models released since 2015. To update your Apple TV, open the Settings app on the device, navigate to System → Software Updates, and select Update Software. Below, we have recapped what is new in tvOS...
1st generation apple tv

Apple TV Is Now Almost 20 Years Old

Saturday March 21, 2026 6:14 am PDT by
The Apple TV is now almost two decades old amid rumors of the announcement of a new model. Today marks 19 years Apple launched the original Apple TV. Apple CEO Steve Jobs unveiled the Apple TV at Macworld Expo in January 2007 alongside the original iPhone, but it didn't launch until March. The ‌Apple TV was initially previewed as the "iTV." The device allowed users to wirelessly stream...
HomePod mini and Apple TV Sage

New Apple TV and HomePod Mini Remain 'Ready' to Launch

Sunday March 22, 2026 6:33 am PDT by
Apple has unveiled nine new products this month, but the wait continues for the next-generation Apple TV 4K and HomePod mini models. In his Power On newsletter today, Bloomberg's Mark Gurman said new versions of the Apple TV and HomePod mini have been "ready" since last year, but he reiterated that Apple has held off on releasing them until the more personalized version of Siri and other...

Top Rated Comments

InGen Avatar
68 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
68 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)
68 months ago
We love our customers!
Score: 22 Votes (Like | Disagree)
casperes1996 Avatar
68 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
68 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)
68 months ago

Do these people realise how overpriced Apple stuff is?
Do you make the same comments on Samsung or Google’s page? Their products cost about the same or more, but without Apple’s much better integration.
Score: 11 Votes (Like | Disagree)