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Apple Opens Up App Subscription Services, Cuts Fees to 15%

06/14/2016

Apple Opens Up App Subscription Services, Cuts Fees to 15%

Apple marketing head, Phil Schiller, revealed plans on Wednesday to shift to a new revenue sharing model, favouring subscription based services over one-time/in-app purchases.

 

The company currently commands a 30% cut of any sales through its app store. However, from June 13 – today for most – users that maintain a subscription for a year will trigger a discount for app devs and drop Apple’s cut to 15%, a nice jump in revenue for developers. If users cancel their subscription, there is a 60 day “cooling-off” period where if resubscribed they will remain in the lower 15% discounted pricing tier. So expect a loooooooot of invites to rejoin when you decide to ditch a subscription service lol.

 

Further, subscriptions services are going to be opened up to all apps (as opposed to just streaming services and the like) and there will be a variety of service tiers available: basic, premium and pro for example. Subscription cycles can be customised to weekly, monthly or annually and devs will also be able to keep existing subscribers at their current price, whilst increasing it for new buyers, with unlimited pricing cohorts available.

 

In addition to these changes, a new app advertising channel will be opened up, called Search Ads. This will allow developers to promote apps directly within the store search results, helping “customers discover or reengage with their apps”. Apple claims ads will respect users’ privacy but we will quietly wait and see on that one lol.

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