In case you didn’t know, Apple takes a 30% cut from the revenue that developers make from either selling the app or from in-app purchases. Some companies chalk it up to the cost of doing business with Apple, while others like Spotify have voiced their displeasure and offered users a way to circumvent the app store for cheaper subscription rates.Now Apple recently announced that they would be changing things up by offering developers more money for subscriptions at a 15/85 split if they can keep users subscribed for at least a year. It sounds good but apparently to Spotify, this isn’t good enough, at least according to the company’s global head of corporate communications and global policy, Jonathan Price.
Speaking to The Verge, price calls Apple’s change a “nice gesture” and thinks that it doesn’t really address the main problem that they have with the system. “Unless Apple changes its rules, price flexibility is prohibited, which is why we can never provide special offers or discounts, and means we won’t have the ability to share any savings with our customers.”
Price adds, “Apple still insists on inserting itself between developers and their customers, which means developers will continue to lack visibility into why customers churn — or who even qualifies as a long-term subscriber.” It is unclear if Spotify is the only developer still unhappy about these changes, but for the small time indie developer, we reckon the 15/85 split could be very compelling.