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Apple Once Considered Taking a 40% Cut of the Action From In-App Subscription Fees

Apple Once Considered Taking a 40% Cut of the Action From In-App Subscription Fees

Apple executives once considered taking a 40% cut of some app subscription fees, according to documents shared on Wednesday by the House Judiciary Committee.

Bloomberg reports that in March 2011, Apple services head Eddy Cue emailed three other company executives, offering a suggestion that Apple should “ask for 40% for the first year only.” Cue also wrote that a “few deals” needed to be worked out for Apple to “see what is right.”

Executive Jai Chulani, replied that Apple could be “leaving money on the table” just asking for 30% in the first year of subscriptions.

The emails were referring to apps that offered digital content like Hulu or Netflix on the Apple TV, not apps on the iPhone or iPad. However, it should be noted that Apple had already launched App Store subscriptions by the time of the emails.

Apple ultimately decided on a 30% cut of the subscriptions purchased through the App Store. The Cupertino firm later reduced that rate for longer running subscriptions. Currently, Apple wets its beak to the tune of 30% for the first year of in-app subscription purchases, and 15% for all of the following years.

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