App Store 2.0 is coming with subscription and search result ads


There’s a big change coming to the iPhone and it’s the new App Store 2.0!

In a rare interview with Verge, Phil Schiller, Apple’s senior vice president of worldwide marketing, gave a sneak preview into the new developer-friendly features coming to the iPhone soon that will be revealed at the annual Apple Worldwide Developers Conference set to take place from June 13-17 at the Bill Graham Civic Auditorium in San Francisco.

New subscription model

According to Phil, a new revenue sharing model will be introduced according to which Apple will reduce its cut by 15% for developers who have been able to maintain subscriptions with a customer for more than a year. This means that as a developer, you will be able to generate 85% of the revenue generated through the App Store through customers who have subscribed for more than a year. Also, Apple will open up its subscription model to all categories including games.

Search result ads

The other big change to the App Store is that it will allow developers to pay to show ads for search results. According to Phil, “We’ve thought about how to carefully do it in a way that, first and foremost, customers will be happy with…[and that it is] fair to developers, and fair for indie developers, too.”

Its hard to say what kind of an impact search result ads will have on the App Store but we already have a feeling that the move won’t be very welcome by new app developers who rely on organic marketing to have their app discovered and don’t have big budgets to spend on advertising.

However, the new subscription and revenue sharing model is definitely a good news for all the developers out there and definitely for those who aim to create long-term business model for their apps since mostly consumers have reached a saturation point when it comes to apps.

Apple has already begun to speed up app review times for most apps to the point where 50 percent of submitted apps are now reviewed in 24 hours, and 90 percent are reviewed within 48 hours.

We’re hoping to get more details about all of these new features at the Annual Worldwide Developers Conference in a few days!

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