X (formerly known as Twitter) CEO Elon Musk on Wednesday announced in a tweet that he is planning to speak to Apple CEO Tim Cook to lower App Store fees for creators who earn money through subscriptions on the microblogging platform.
In order to maximize what creators receive, Musk is looking to propose Apple collect 30 percent of the creator fee that X keeps instead of the full 30% of subscription fees that a creator earns on Twitter.
For those unaware, Apple charges a 30 percent standard commission on apps and in-app purchases that are made on the X app in the App Store for iOS as per App Store guidelines. For the first year, the subscription commission is charged at 30%, which then reduces to 15% after one year for the subsequent years. The tech giant also takes the same cut for all digital purchases on the App Store.
Meanwhile, Twitter does not charge any revenue from these subscriptions for the first 12 months. After 12 months, the social media network would start taking 10% of the subscription revenue.
However, under Musk’s management, Twitter has decided to amend this policy and not take any cut of subscription revenue until the payout for the user exceeds $100,000. If the user exceeds the $100,000 mark, Twitter will take 10% of the subscription revenue earned by the creators. However, the first 12 months of a subscription will continue to remain free for all creators.
If Apple agrees to Musk’s proposal, then the Cupertino giant would be eligible for 30 percent of the 10 percent cut that Twitter receives from creators who earn more than $100,000.
Super Important to Support Creators!
If you can afford it, please subscribe to as many creators on this platform as you find interesting.
People from every corner of the world post incredible content on ?, but often live in tough circumstances, where even a few hundred…
— Elon Musk (@elonmusk) August 2, 2023
This is not the first time that Musk has been critical of Apple’s 30 percent commission fees that it charges on any purchases made through apps via its App Store. Last year, the X CEO had expressed his thoughts about the high App Store fees and called it “a hidden 30% tax on the internet” and described it as “definitely not OK”.
While Musk’s intentions seem to be noble, the Cupertino company is known for not making any exceptions to its App Store rules. Hence, it remains to be seen if Apple makes an exception this time and gives in to Musk’s demands.