Fresh off the press from his audacious move of rebranding Twitter as ‘X’, Elon Musk openly criticizes Apple for its hefty subscription costs levied on creators, highlighting that Twitter itself doesn’t claim a share of such earnings. Musk intends to touch base with Apple’s CEO Tim Cook concerning the substantial App Store fees.
The agenda for Musk’s meeting with Tim Cook includes a plea to reevaluate the steep 30 percent cut enforced by Apple on digital transactions within apps.
Dialogue on Apple’s Commissions Between Elon Musk and Tim Cook
Elon Musk, celebrated for his trailblazing roles across various sectors, has been embroiled in controversy over his leadership at Twitter/X, as critics argue that it’s affecting his duties at SpaceX and Tesla. He proposes a restructured deal wherein Apple’s 30 percent fee would apply only to the part of the revenue that Twitter retains, not the entire amount from creators’ subscriptions on the iOS platform.
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People from every corner of the world post incredible content on 𝕏, but often live in tough circumstances, where even a few hundred…
— Elon Musk (@elonmusk) August 2, 2023
Musk hopes that by persuading Tim Cook to lower the commissions X pays on subscriptions, it will, in turn, boost revenues for content creators. He is pitching this rate alteration as a move to adjust Apple’s cut to only account for what Twitter profits from, thereby maximizing creators’ take-home pay.
Musk further indicates Twitter/X’s new approach towards creators’ revenue shares. The company will now only take a 10 percent cut after an individual creator exceeds $100,000 in sales, without taking anything for the first year.
This challenge to Apple’s fee structure isn’t his first rodeo. Previously, Musk criticized Apple’s fee as an “Internet tax” and delayed Twitter Blue’s iOS launch to avoid paying the fee. He also recounted when Apple purportedly threatened to remove Twitter from its App Store, which was later resolved after an encounter with Cook, labelled as a misunderstanding.
A surge in subscriber numbers for X could prove significantly beneficial, especially since Musk is keen to reduce reliance on advertising revenues, which have seen a notable dip. He is relying on the support of creators and the adoption of Twitter Blue to fill in the revenue gaps left by plummeting ad sales.
As for the outcome of Musk’s appeal to Cook, it’s up in the air. Cook has been known to stand firm against any suggestion of cutting the App Store fees. Should Cook swerve from his stance, it would mark a pivotal moment for X. On the flip side, if Cook stands his ground, the possibility of Musk resorting to legal action against Apple remains intriguing.
