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Apple Makes Huge Changes to the App Store

Posted by Andrew Floyd on 09-Jun-2016 10:40:49
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Apple will roll out major changes to the App Store next week and it is set to affect how, and how much you’ll pay for your favourite apps. Among the vast number of changes, we’re likely to see search ads for apps, revenue sharing, and new incentives for more app developers to switch to subscription-based models.

In the build up to WWDC 2016, Apple VP of Marketing, Phil Schiller, sat down to talk about Apple’s “renewed focus and energy” on the App Store. And we’re expecting to see a number of App Store-related announcements at the company’s keynote on June 13th in San Francisco.

Only news, cloud services, dating and streaming apps have been able to offer subscriptions that are billed automatically through iTunes in the past, but that is about to change. The tech-giant is planning on opening up subscriptions to all applications.

Schiller said: “Now we’re going to open up to all categories, and that includes games, which is a huge category.”

And the news means Apple is set to loosen its grip on the current 30/70 revenue split. If developers are able to maintain customers for more than 12 months, Apple will now drop its take down to 15%.

Free apps have been around for years but the cost to keep your favourite applications on your Apple devices could rise considerable due to these subscriptions.

However, to ensure Apple customers remain happy, Schiller revealed some protections that have been put in place. Users are able to opt-out of subscriptions if the price is raised and there’s also the introduction of a revamped App Store interface to manage these subscriptions.

This new subscriptions model is expected to roll out later this year and whilst Apple has resisted paid ads for years, Schiller believes the time is right.

He said: “We’re trying to protect the customer from surprises in pricing. We’ve thought about how to carefully do it in a way that, first and foremost, customers will be happy with.”

 

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Topics: App Optimisation