Tech giants Apple and Google are both planning changes to their revenue sharing models for app store subscriptions.
According to a Wednesday report from The Verge’s Lauren Goode, Apple senior vice president of worldwide marketing Phil Schiller said the company will soon change its long-standing 70-30 revenue sharing model.
While Apple will retain its 30 percent cut for the first 12 months, Schiller said the company will slash its share to 15 percent for developers who maintain subscribers for more than a year. Schiller said Apple also plans to open the subscription option to all developers, including games, rather than reserving it for certain types of apps.
Apple said the new 15 percent sharing model will be applicable to all current subscriptions on iOS, tvOS, and OS X. Free trials, bonus periods and 60-day grace periods will not be included as part of Apple’s requirement for a year of paid service before the 15 percent split takes effect, the company said.
The new revenue sharing model will take effect on June 13, Apple said.
Apple will also begin including paid search ads for apps in its App Store, and is working to shorten app review times, Schiller said.
Like Apple, Recode’s Mark Bergen on Wednesday reported Google is also planning to cut its revenue share from 30 percent to 15 percent. Unlike its rival, however, Google is planning to implement the change from the start of a subscription.
Google has reportedly been testing the change with entertainment companies, but Bergen said it is unclear when the new split will be rolled out.