App Store 2.0

Apple’s annual conference for developers, which kicks off next Monday, is normally when the company previews its newest software for iOS and Mac OS X. But this year’s WWDC isn’t just about new operating systems: starting next week and continuing throughout the fall, Apple will begin rolling out new incentives for developers in its App Store, including a new revenue-share model and the introduction of search ads in its iOS App Store.

In a rare pre-WWDC sit-down interview with The Verge, Phil Schiller, Apple’s senior vice president of worldwide marketing, said that Apple would soon alter its revenue-sharing model for apps. While the well-known 70/30 split will remain, developers who are able to maintain a subscription with a customer longer than a year will see Apple’s cut drop down to 15 percent. The option to sell subscriptions will also be available to all developers instead of just a few kinds of apps. “Now we’re going to open up to all categories,” Schiller says, “and that includes games, which is a huge category.”

As much as I applaud Apple for trying to do something about the terrible state of their application store, I don’t think any of this will provide the answer. If people are unwilling to spend a euro on an application, the solution clearly is not to ask them to pay a euro a month. No, these changes feel far more like trying to increase the revenue for the big, established players, further drowning out the few interesting indie developers that remain.

Back when the gold rush in mobile development was still in full swing, I was mocked for suggesting the model simply wasn’t tenable, and was wreaking havoc among the indie development scene. I do feel at least a little bit of vindication that finally, finally, Apple seems to agree with me that their application store model is broken.

Great scoop for The Verge and Lauren Goode, by the way.


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