How Apple’s Changes to Its Store Could Benefit App Developers

Dan Burhart, chief executive of Recurley, a subscription management and billing platform that works with more than 2,000 companies, said on Friday afternoon that he was interacting with many app developers who were buzzing with enthusiasm. Large companies with “established momentum and notoriety” are likely to benefit from being able to direct their loyal customers elsewhere, he said.

Match Group, the maker of dating apps Tinder and Hinge, is on track to pay Apple and Google – which control the same App Store for phones running its Android software – to raise more than $ 500 million in commissions this year, the company’s biggest expense, according to match finance chief Gary Svidler. Said. He said the company is considering ways to use Friday’s ruling to make it as low as possible, including a lower charge for paid subscriptions on its website.

One analyst speculated that the change could save the match $ 80 million, but Mr. Svidler said there are too many questions to make such a prediction.

“Depending on what the tech rate will be, it will help us from the bottom line perspective, and it will allow us to invest more in our business, and also allow customers to benefit,” he said.

Michael Love, founder and chief executive of a Chinese dictionary app called Placo, said the prospect of avoiding commissions – he pays Apple 15 percent – was good news. Even better than this? It is possible that it may interact directly with customers in a manner restricted by App Store rules, such as sending promotional emails, issuing refunds, and viewing old orders.

“I’m excited for the possibility of paying without Apple getting in the way,” he said.

Mr. Love, 39, said he couldn’t make many deals with other dictionary publishers because those publishers didn’t want to pay commissions to both Apple and him and wanted to lose a lot of money.

Now, by avoiding Apple’s fees and working directly with publishers, it could potentially transform its business and become a “boutique e-book retailer.” Said Prem. He said it could increase his annual income from $ 500,000 to $ 5 million or $ 10 million.

“It makes it possible for younger people to compete,” he said.

Leave a Reply

Your email address will not be published. Required fields are marked *