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Elon Musk seeks Tim Cook’s intervention for reduced App Store fees on X subscriptions.

Elon Musk is advocating for creators on the platform previously known as Twitter, now termed ‘X’. He is set to approach Apple’s Tim Cook to reconsider the App Store fees that X incurs for its subscriptions. Musk’s intention is to increase the revenue share for creators.

In a tweet, Musk detailed that while the initial idea was for X to retain nothing for the initial year and then 10% afterwards, he aims to change this. X will now retain zero profits until the earnings surpass $100,000, after which a 10% fee will apply. Musk highlighted the 30% fee Apple charges and expressed his intent to negotiate with Tim Cook so that Apple only takes 30% of what X retains, thereby increasing the creator’s share.

The feasibility of Musk’s proposition remains uncertain. In the past, Cook has been quite steadfast against altering the App Store’s fee structure despite criticisms from various developers. Neither Apple nor X has offered a comment on the issue as of yet.

Musk’s disagreements with Apple’s App Store policies aren’t new. He previously addressed Apple’s “hidden 30% tax” for in-app purchases and even contemplated postponing the release of Twitter Blue to circumvent these charges. Furthermore, Musk suggested that Apple had considered removing Twitter from the App Store, though he later categorized this as a “misunderstanding” after a confidential meeting with Cook.

The primary driving force behind Musk’s latest move seems to be to augment the number of paid subscribers on X. After Musk’s acquisition of Twitter, the company saw a decline of more than 50% in ad revenue, with numerous advertisers not reverting to their former spending levels. Boosting the subscriber count, through both creators and Twitter Blue, could potentially offset the company’s dependence on ad revenue. However, to counterbalance the current revenue gap, X would require a substantial influx of subscribers, running into the tens of millions.

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