> For the first year of a subscription Apple will maintain its 70 / 30 revenue share; after one year, the new 85 percent / 15 percent revenue share will kick in (applied per subscriber).
This is the exact opposite of what Apple should do. App startups in their first year need all the revenue they can get. After the first year, most of those companies have either reached profitability or gone out of business.
This policy is going to mean more revenue for the large, established app companies, like Instagram or Snapchat, and less revenue for any potential usurpers. They're effectively suppressing innovation and locking in any monopolies they've helped to build.
I think Apple is attempting to reward services and startups that are focused on long-term value for their users. If I create a subscription app, I want to get to that 85/15 split. So that means I need to build my business such that I'm around in a year to collect on that split and I'm providing a good enough service after a year that people stay subscribed.
In other words, I think Apple is intentionally discouraging companies that are so focused on the short game they may not be around in a year.
This is the exact opposite of what Apple should do. App startups in their first year need all the revenue they can get. After the first year, most of those companies have either reached profitability or gone out of business.
This policy is going to mean more revenue for the large, established app companies, like Instagram or Snapchat, and less revenue for any potential usurpers. They're effectively suppressing innovation and locking in any monopolies they've helped to build.