Apple Is Quietly Encouraging Paid App Developers to Move to Subscriptions

Kif Leswing, writing for Business Insider:

The new way Apple wanted to promote: Instead of users paying for apps once, they’d pay on a regular basis, putting money into developer coffers on a regular schedule. Apple would still get a 30% cut of the subscription’s cost, but if a customer continued to subscribe after a year, Apple’s cut would go down to 15%.

At the meeting, Apple underscored that the app model was changing. The meeting touched on topics including launching, customer acquisition, testing and marketing, engagement, retention, monetization, and paid search ads.

An Apple representative said at the meeting that paid apps represent 15% of total app sales and is on the decline, according to a person who was there who did not want to be identified to maintain their relationship with Apple.

Interesting story, and the move does make sense, why make a one-time sale off a customer when you can work with subscriptions and keep passive income?


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