Apple And Google To Overhaul App Subscription Revenue For Developer: Reports

Both Apple and Google are planning to give developers a bigger slice of the pie for revenues generated from the App Store and Google Play Store, respectively, according to reports. Here’s what you need to know.

Mobile app devs put your hands up image from Shutterstock

More and more people are becoming app developers mainly for iOS and Android devices. These apps are mainly sold through Apple’s App Store and Google’s Play Store and both these online marketplaces take a 30 per cent cut of revenues for each app.

Now both Apple and Google are looking to let app developers keep more of the money they make from the stores. In an interview to The Verge, Apple senior vice-president of worldwide marketing Phil Schiller said the company is bringing in a new subscription model for apps. Apple will let developers keep 85 per cent of the revenue per app if a subscription with a customer lasts longer than a year.

Google is planning to go with the same 85/15 revenue split without the one-year subscription caveat so developers will get to keep more money straight away, according to a report by Re/Code. According to the publication, sources have revealed that Google has been testing this new revenue arrangement with entertainment companies but there are no solid timeframe as to when it will be rolled out widely.

If these reports are correct, it that’s excellent news for Apple and Android app developers, many of which make around $1000 per month.

[Via The Verge/Re/Code]


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