Saturday, June 6, 2015

Apple App Store May Change 30/70 Profit Split Between Apple and Developers For Subscriptions

Currently, for every app a developer sells, the developer will get 70%. This formula applies to in-app purchases, such as subscriptions. For example, if a user buys a Microsoft Office 365 subscription from the Microsoft website, Microsoft gets 100% of the profits. If they purchase the same thing from the iOS app, Microsoft gets 70% of the profits. They may change soon in favor of the developer to avoid lawsuits and increase appeal. HBO Now and Apple TV apps get 85% profits.
"Changing the App Store's terms of trade could improve the economics of online content businesses and reassure regulators that the company is not abusing its position as gatekeeper to one of the world's most lucrative digital marketplaces."
- Financial Times 

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