Apple might introduce subscription apps

Apple | Aug 23, 2018 | Master3395

How to increase revenue from the App Store.

Business Insider has gained access to information from Apple saying that only 15 percent of all new App downloads from the App Store are paid. According to the reports, the company wishes to do something about introducing subscription solutions.

Can retrieve more on subscriptions
Apple earns 30 percent, in some cases less, on all transactions through the App Store on iOS and macOS. Fresh accounting figures show that Apple's revenue for services, including the App Store, has never been higher, but the company wants to stop the decline in revenue from paid apps.

The solution is a subscription. Instead of customers buying the app and using it at no additional cost, Apple wants to subscribe so that customers instead of buying the app will look up a small amount each month. The iPhone manufacturer will still take 30 percent of the transactions, according to reports from Business Insider, with a slight difference.

As the power services, the distribution will be adjusted to 15 percent - 85 percent to the developer - after one year.

- The business model for apps is changing
According to Business Insider, Apple believes that developers must understand that the business model of the apps is changing and those successful apps usually focus on the long run rather than a large sum at once.

"Indie developers wanting to capitalize on this, have to go for a subscription model," writes the website.

Keywords: app, apple, appstore, ios

Sources: Business Insider, (requires login) Tek.no , (Norwegian)

Author: Master3395


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