Apple’s App Store makes so much money from fewer downloads than Google’s Play Store. So, why change a revenue sharing model with developers that has worked for eight years? Because Phil Schiller is betting that it will end up making Apple more money.
Schiller revealed to The Verge that developers can soon activate app access subscriptions on their products from any category — including games. Apple will continue to take 30 percent of the revenue, but if a customer keeps a subscription for more than a year, that cut shrinks down to 15 percent per transaction. App makers would have options in building paywalls for access to certain features or the entire app or both.
Ads for promoted apps will be listed in search results similar to how promoted posts or entries show up on social media or on Google.
It may not go far enough for developers who have been pushing for pay-to-update, streamlining the porting process between different iDevices and other moves. Schiller would only say that the company will “evaluate what will be a better experience for the user, and we make choices based on that.”
Smaller updates to the App Store include the reintroduction of the Categories tab, a cleaner Featured tab without the apps already on your device and 3D Touch-activated app recommendations.
It’s no small change we see coming our way at WWDC this year and beyond. The subscription model launches the same day the conference does: June 13.