According to a report from Business Insider, Apple held an invite-only meeting for developers in the New York last year where it asked developers to go for subscription plans of apps instead of charging a one-time fee. The reason behind this request is the fact that subscription-based apps fetch more revenue than the apps that are sold in exchange for one-time payment.
The meeting saw Apple urging the developers to change their business and adopt the sustainable business model – recurring fees for apps. Apple rakes in the 20% of the subscription charges that the customers pay, therefore, if developers start charging recurring fees, it means more benefit for Apple.
Increased iOS Apps Based On Subscription Model
There has been a surge in the apps based on the subscription model in the recent past. The revenue generated by app subscriptions has almost doubled when the figures for the last year are taken into account. There are more than 30,000 apps in the iOS App Store that require a subscription, and there are big names included in the list such as Netflix, Tinder, Microsoft Office Suite, etc.
What Does It Mean For Users?
For users, this is an amalgamation of sad and happy news. While subscription-based apps mean that users need to shell more money to keep using an app, it also means that the app developers are bound to bring constant improvement and updates in the apps to justify the recurring charges.
After some efforts involving the focus on keeping intact the users’ privacy for improving its image in the eyes of customers, Apple is back at it again. It would be interesting to see how the world’s first trillion dollar company continues to pursue its greedy motives.