You may have noticed this year, instead of emails being sent out, Apple is passing the task of alerting the public of its annual Worldwide Developers Conference to… wait for it… Siri.
With the WWDC soon approaching (13th June – 17th June), The Verge has reported on the upcoming release of one of the first major updates to the Cupertino company’s App Store in years. Alongside the expected new versions of iOS, OS X and software for the Apple Watch, Tim Cook and the gang will be demonstrating a somewhat fresh topic, their new and improved App Store, with Apple turning its focus to changing the way developers and users interact with the platform. Also included in the roll out are new incentives for developers, an innovative search ads facility in the store, a new revenue-share model and the ongoing successes and turnaround of the app review process.
In his interview with The Verge, Phil Schiller, the senior VP of Apple’s Worldwide Marketing – and occasional WWDC keynote guest – noted the improvements being made to all aspects of the store from app review to the discovery process, but more importantly, Apple’s desire to alter its revenue-sharing model for apps. Although they will keep the 70/30 revenue split, the cut Apple takes will drop to an attractive 15 percent (85/15), for those developers who are able to keep a subscription with a customer for longer than a year. An interesting change to come for business models is in the form of subscriptions; Apple will opened this feature up to all developers and kinds of apps, rather than just a few selected app types. “Now we’re going to open up to all categories,” Schiller states, “and that includes games, which is a huge category.” Exciting and of course tempting for developers, this shift will mean a monthly fee can be offered for apps and games, instead of charging a single price upfront per app, so users can get more for their money and the developers can open up their app offerings to a wider market. This feature aligns with the recent reports of iPhone sales finally beginning to decline, by creating a lucrative new revenue stream from the existing users.
LoopInsight comments developers will be able to create region-specific pricing, as well as choose “one of over 200 subscription price points”. Interestingly, also suggested in the update is if, and when a developer raises their subscription price, the increase will have to be re-authorized by users.