That's correct. It's a very big difference if you think about it. Under the normal arrangement, a customer has to retain for 12 months before the 15% rate kicks in.

Depending on the product, you could be losing a significant portion of your customer base before then. For example Netflix, known for insanely good retention, loses nearly 40% of customers by month 12. [1]

[1] https://secondmeasure.com/datapoints/netflix-disney-plus-app...