Apple planned to reduce App Store Tax for reliable subscribers

FILE - In this Monday, June 10, 2013, file photo, developers look over new apps being displayed on iPads at the Apple Worldwide Developers Conference in San Francisco. Apple says it will start showing paid ads when people search for apps in its popular mobile store. The ads are among several changes that Apple hopes will bring in more money for itself and independent software developers who want to promote apps for the iPhone or iPad. (AP Photo/Eric Risberg, File)
Written by Barnaby Parsons

If you sell the app, subscription and different product through App Store, So Apple gets about 30% of your hard earned money. This is how it’s been since inception of App Store’s about seven years ago.

Soon Apple will lower the commission of App Store for first time on the condition that if an app will retain the subscriber for more than a year, split of revenue will be about 85/15.

This change will also apply instantly to current apps with the users that are above 1 year old and that possibly provide injection of additional revenue for various companies.

For instance Spotify, flaunted to have subscribers of 20 million during last year. However, For sake of dispute, if only half of these subscribers are paying members now, the change can also possibly represent about $15m in additional revenue of subscription for Spotify each month, and this is possibly the conservative evaluation.

The most Terrific news:

Apple will also introduce other important change to subscription of App Store. Till now, the apps in specific categories – entertainment and media content – can also charge the subscription fees. Very soon, the app will get able to provide the option.

It is extensively seen as a way for Apple that can easily encourage the productivity apps of high-end onto iOS, mobile operating system.

“This can also be a change which makes market for the professional-calibre and for iPad apps to be possible,” said John Gruber, technology writer with Apple watcher for long-time.

“I believe this it is terrific news for both the users and for developers.”

Without any doubt, danger is through opening up the subscriptions to each different kind of app, however Apple risks is also creating the most frustrating atmosphere this is quite irritating for the users who got accustomed to simple model about the paid apps and the free apps.

Then over the time again, subscriptions certainly are more possible to encourage the quality as compared to the one-off payments for the challenge for shifts of developers from being considerable for people to pay them once, to convince and keep them paying once again.

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Barnaby Parsons

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