Major changes are coming to the App Store that is supposed to improve both the developers and consumers experience while using the App Store.
One of the major changes that will impact the developers is Apple’s plan to give developers a bigger revenue share if they can maintain a subscription with a customer longer than a year. This means developers will have to sell their apps for a recurring fee rather than customers paying for the app once. According to The Verge, the app subscription will allow a way “for Apple to wring more profits from its existing user base.”
During the first year of a subscription Apple will maintain its 30 percent revenue share, then after that Apple’s cut will drop down to 15 percent. This new subscription model will roll out to developers later this year. However, developers that already have subscribers that have been maintained for a year will see the revenue split June 13th.
Back in January, Apple said that developers around the world have earned $40 billion since the App Store first launched in 2008.
As for the consumers, Phil Schiller, Apple’s senior vice president of worldwide marketing, told the The Verge in an interview, that the new subscription feature will be consumer-friendly, “We’re trying to protect the customer from surprises in pricing.” In order to do this, consumers will have the choice to opt-out if an app’s subscription price rises. However, if the consumer doesn’t make an action, the subscription will end instead of automatically opting the consumer into another week or month of payment.
Another change Apple has been working on is the app review time. It’s been reported that Apple has sped up the app review process to where 50 percent of submitted apps are now reviewed within 24 hours, and 90 percent of apps are reviewed within 48 hours.
Another change coming to the App Store is search ads. Apple will start showing ads for apps in the App Store search results. In the past, the company has tried to avoid showing search ads, but now it has a change of heart. “We’ve thought about how to carefully do it in a way that, first and foremost, customers will be happy with,” Schiller told The Verge. “Fair to developers, and fair for indie developer, too.”
The App Store search ads will go into beta Monday. The search ad will be identified as a search ad at the top of the iOS App Store search results. The ads are only supposed to appear one at a time and be relevant to what users are searching for. It should be noted that users will have the ability to opt-out
of the search ad data tracking and location tracking.
Apple will talk more about the changes that are coming to the App Store during the WWDC, which kicks off Monday.
Source info: The Verge