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Apple’s App Store Announces New Revenue-Share Model

  • 05.10.2016
  • News

Apple has announced that its App Store is set to have a new revenue-share model. It has unveiled the new App Store review guidelines document for developers. These new developments came ahead of Apple’s release of iOS 10. The updated guidelines are intended to serve as a model for App Store best practices.

The Cupertino-based tech giant exhorts app developers to read these updated guidelines as they plan and develop their apps for the upcoming releases of iOS 10, macOS Sierra, watchOS, and tvOS. Source

The new document is said to offer a seamless experience for digital subscriptions in apps. In-app purchase APIs will deliver a straight-forward and powerful way to implement subscriptions in apps on all Apple platforms and in all App Store categories. The new auto renewable subscriptions will maintain the familiar 70 / 30 split. But the revenue sharing split will change in favour of app developers in the ratio of 85/15, if they manage to keep a user subscribed for more than a year.

As reported by the Apple developer website, at the end of each subscription duration, the subscription will automatically renew until a user chooses to cancel it. Auto-renewable subscriptions give users access to content or services from within your app on an on-going basis.

The auto-renewable subscription is now offered on all Apple platforms and in all app categories. According to Apple’s senior VP of Worldwide Marketing Phil Schiller (as reported by The Verge), “Now we’re going to open up to all categories, and that includes games, which is a huge category.”

“When users sign up for a subscription with a free trial, their subscription begins immediately but they won’t be billed until the free trial period is over. How long a free trial can be depends on the duration of the subscription offering. For example, a one-month subscription cannot offer a free trial of longer than one month.” Source

Apple also lays out some specific guidelines that need to be followed while incorporating auto-renewable subscriptions into the app. These conditions can be viewed at Apple developer webpage.

Besides an enhanced app subscription model, the renewed document contains information about the introduction of search ads. It also contains more info on SiriKit and iMessage extensions like stickers. The guidelines also cover definitive standards to be followed by app developers in terms of safety, performance, business, design, and legal.

The App Store is a digital distribution platform, developed and maintained by Apple Inc., for mobile apps on iOS.

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