AP
Apple will now take a smaller cut of money from app developers if customers stick with their subscriptions for longer than a year, Phil Schiller told The Verge in a pre-WWDC interview.
Currently, Apple splits app revenue 70-30 with developers, keeping 30% of the purchase price for itself.
Apple, though, will “soon alter” that model for developers that sell their apps as subscriptions instead of as one-time purchases, Schiller said.
If an app is sold as a subscription, then developers that get customers to stick around for longer than a year will see an 85-15 split after the first year instead.
The change means more money in the pockets of app developers that sell their apps as a reoccurring subscription rather than a one-time deal. But even Apple’s developer website cautions that this isn’t the best business model for all apps.
Apple’s developer site reads:
Although all categories of apps will be eligible, this business model is not appropriate for every app. Whether updating content on a regular basis, providing on-demand use of a service, or giving access to a large collection of content, successful auto-renewable subscription apps are equipped to offer continued utility and enjoyment to their subscribers.
The idea is for app developers to continually update an app and keep customers engaged. If they do under the subscription model, then the change now means that they’ll be financially rewarded for it.
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