In a recent announcement on the X platform, Musk revealed his intention to engage in a discussion with the CEO of Apple regarding the company’s app monetization strategy. Presently, Apple retains a 30% share of subscription revenue and one-time revenue generated through the App Store for the first year. After the initial year, this share decreases to 15%.
Musk’s primary concern with the current system is that Apple’s fee is deducted from the total earnings of creators on X, which he finds problematic. His proposal is for Apple to instead take this cut from the revenue that X, the platform itself, generates from creators. This potential adjustment could lead to a significant shift in how apps contribute to Apple’s revenue.
Recently, Apple made a special exception for X by allowing it to use the single character “X” as the app’s name in the App Store, which was previously not permitted. However, convincing Apple to adopt Musk’s new proposal may prove to be much more challenging. It would entail a substantial change in Apple’s monetization approach, and Musk might face difficulty persuading Tim Cook or Eddy Cue to agree to this modification. Only time will tell if Musk can successfully negotiate this change with Apple.
Aside from Musk’s efforts to address Apple’s revenue sharing, he also announced some significant changes regarding how X will monetize its creators. Going forward, the company will only collect 10% of revenue generated by creators after the initial 12 months, but this will be applicable only after their total payouts exceed $100,000. This new approach aims to be more creator-friendly and allow them to retain a larger portion of their earnings.
Furthermore, Musk revealed that creators will soon have the ability to adjust the pricing of their subscriptions, providing them with greater flexibility and control over their content monetization. However, the specific release date for this feature was not disclosed, leaving creators eager to learn when they can utilize this option.
In other news related to X and Twitter, the company introduced a new feature for Twitter Blue subscribers. They now have the option to hide their blue checkmark, which indicates a verified account, if they wish to maintain anonymity about their subscription status. This move acknowledges the diverse preferences of subscribers and their desire for privacy regarding their usage of the subscription service.