Apple reportedly held secret meeting with app devs to push subscription models

midian182

TechSpot Editor
Staff member

The report says that Apple held a secret meeting with around 30 developers in New York in April 2017. It reportedly encouraged them to move to subscription models so users would pay for apps “on a regular basis, putting money into developer coffers on a regular schedule,” and Apple’s, of course.

There’s no mention of which app developers were present, but the initiative is said to be referred to internally as “Subscription 2.0,” and has been in the works since 2016. An Apple rep at the meeting said that paid apps represent 15 percent of the company’s total app sales—a figure that is falling. Discussions were said to cover “launching, customer acquisition, testing and marketing, engagement, retention, monetization, and paid search ads.”

Apple takes 30 percent of the subscription cost during the first year, if a customer continues to subscribe, that amount falls to 15 percent. It’s said to have warned developers at the meeting that their businesses would stop growing if they didn’t offer subscription packages.

It looks as if Apple has got its wish. At the company’s earnings call last month, CEO Tim Cook said that paid subscriptions from Apple and third parties had passed the $300 million mark—up 60 percent over the last year.

“Apple is quietly building one of the biggest subscription businesses in the world — something that’s core to the company as iPhone sales growth slows,” writes Business Insider.

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Jon Tseng

TS Booster
Lol love it when a media provider firewalls an article (BI link)... but leaves the full plaintext embedded in the webpage source. :p
 

toooooot

TS Evangelist
They see it as a way to put more money in their pocket and they will. But if they look into the future, they will see that there is only so much they can make pay a single person beside his food, shelter, transportation. When every company runs subscription instead of single purchase, it would come to the point where, people would find an attractive product that only asks a single payment and offers similar features. I dont recommend anyone office 365 for this reason. It is extremely and unreasonably expensive. Of course, in a rich country like this one, you can make a lot of people pay for many many services, music, movies, app platforms. But the first financial crisis, all these subscription services will go to garbage, along with their creators. Keep blowing the bubble, it wont be getting bigger forever.