How Apple’s Store Changes Could Benefit App Developers
Dan Burkhart, managing director of Recurly, a subscription management and billing platform that works with more than 2,000 companies, said many app developers he communicates with regularly were enthusiastic on Friday afternoon. Large companies with “established momentum and brand awareness” should benefit from the opportunity to direct their loyal customers elsewhere, he said.
Match Group, the maker of the Tinder and Hinge dating apps, is set to pay Apple and Google – which controls a similar app store for phones running its Android software – more than $ 500 million in commissions this year, the biggest expense of the business. said Gary Swidler, Chief Financial Officer of Match. The company was already considering ways to use Friday’s decision to reduce that bill as much as possible, including charging less for paid subscriptions on one of its websites, he said.
An analyst estimated the change could save Match $ 80 million a year, but Mr Swidler said there were too many questions to make such a prediction.
“Depending on the participation rate, it will help us from a bottom line perspective, and it will allow us to invest more in our business, and also allow us to pass the benefits on to consumers,” he said.
Michael Love, founder and CEO of a Chinese dictionary app called Pleco, said the prospect of avoiding a commission – he pays Apple 15% – was good news. Even better? The possibility that it could interact directly with customers in ways that the App Store rules precluded, such as sending promotional emails, issuing refunds, and finding old orders.
“I am excited about the possibilities of paying without Apple getting in the way,” he said.
Mr Love, 39, said he had not been able to make many deals with other dictionary publishers because those publishers did not want to pay commissions to him and Apple and lose a lot of money. ‘money.
Now, by avoiding Apple’s fees and working directly with publishers, he could potentially transform his business into an “e-book retail store,” Love said. This could increase his income from around $ 500,000 per year to $ 5-10 million, he said.
“It allows the little guys to compete,” he said.