Elon Musk has revealed his intentions to petition Tim Cook for a reduction in the App Store fees for X’s subscriptions. This move comes in response to the growing discontent regarding the so-called “App Store tax” levied by Apple on in-app purchases. Musk’s request is part of a wider initiative to increase the income of content creators through the platform formerly known as Twitter.
Musk declared on Twitter, “While we previously maintained that _xD835__xDD4F_ would retain no percentage for the first year, subsequently moving to a 10% cut, we are revising this policy to state that _xD835__xDD4F_ will hold no share indefinitely until total payout exceeds $100k, then 10%.” He also took a dig at Apple’s 30% cut, expressing his plan to discuss this matter with @tim_cook in an effort to adjust it to only 30% of what _xD835__xDD4F_ retains, so as to enhance the earnings of the creators.
Musk’s proposal may not get the green light from Cook, given the history of resistance to similar criticism regarding the App Store’s fee structure from various developers. Official comments from Apple and X regarding this issue have not been received yet.
However, this is not the first instance of Musk taking a public stand against Apple’s App Store policies. He has earlier grumbled about Apple’s “hidden 30% tax” on in-app purchases and allegedly postponed the launch of Twitter Blue to bypass these charges. Musk has also claimed that Apple intended to exclude Twitter’s from the App Store, an assertion he later clarified as a “misunderstanding” after a confidential meeting with Cook.
Regardless of the outcome, both Musk and X would substantially benefit from an upswing in paid subscribers, a motivation that seems to be driving Musk’s renewed focus on this matter. With the company’s ad revenue plummeting by more than half as many advertisers are yet to resume their previous levels of spending prior to his Twitter takeover, encouraging more subscriptions—through content creators and Twitter Blue—could help the platform become less dependent on ad revenue. However, to bridge the gap, the company would need to gather tens of millions of subscribers, if not more.
Frequently Asked Questions (FAQs) about App Store fees reduction
What is Elon Musk’s plan regarding App Store fees?
Elon Musk plans to ask Apple CEO Tim Cook to reduce the App Store fees for X’s subscriptions. This proposal is part of a larger initiative to increase the income of content creators on the platform that was formerly known as Twitter.
What is Musk’s proposed fee structure for X?
Musk suggested that X should not retain any share of creator earnings until the total payout exceeds $100,000. After that, X would retain a 10% share. He also mentioned discussing with Tim Cook to adjust Apple’s 30% cut to only 30% of what X retains to increase creators’ earnings.
Has Musk criticized Apple’s App Store policies before?
Yes, Musk has previously taken a public stand against Apple’s App Store policies, expressing dissatisfaction with what he referred to as Apple’s “hidden 30% tax” on in-app purchases. He has also been reported to have delayed the launch of Twitter Blue to avoid these charges.
What is the anticipated impact on X if App Store fees are reduced?
Reducing App Store fees would greatly benefit X and Musk by boosting the number of paid subscribers. Given the sharp decline in the company’s ad revenue, encouraging more subscriptions could help the platform reduce its reliance on ad revenue and potentially make up for the revenue deficit.
Has Apple or X responded to Musk’s request?
As of the time of the report, there hasn’t been an immediate response from either Apple or X to Musk’s request to lower App Store fees.