Subscriptions on the App Store – The mobile app era as a service? – ZDNet France

Apple puts it in battle to accompany the slowdown in sales of terminals? As for smartphones, global shipments should not increase by more than 7% in 2016 according to Gartner. Regarding tablets, the return to growth is not expected before 2018. And the watches connected? The future remains uncertain.

Faced with this trend, the Cupertino company needs new sources of revenue. She put particular its services revenue in the last quarter jumped 20%. The App Store can it be another growth driver? A condition, however, to revitalize the

Contract mobile apps becoming saturated

” The market mobile applications is a bit trying to saturate. it matures. consumers are downloading less, at least in the mature countries. therefore, it is necessary to find other models to continue to generate revenue for Apple and the apps publishers “comments for ZDNet.fr Stephanie Baghdassarian, research director for Gartner .

and if one of these models was the subscription? So far, only certain categories of apps could be sold on the App Store as a subscription, for example cloud services.

In an interview with The Verge, the director of Apple’s marketing, Phil Schiller announced that this method of marketing will in future be open to all categories of mobile applications, including games.

“the system subscription with a payment to the week, month, quarter or year to generate recurring revenue. This is a safety to have income coming in … when the subscription is not canceled naturally. this really is an approach that is related to the fact that the market is starting to calm down “suggests the analyst interviewed by ZDNet.

the subscription also constitutes a response from Apple publishers who have long called for the introduction of the App Store for a free trial and paid updates for apps. These functions are still not relevant.

A combination in-app and subscription?

With the subscription, developers will have the opportunity to pay the user in exchange for a regularly updated application. By varying the value of the subscription, they can also hope to convince more readily a consumer to test an app. A winning hypothesis, but that remains to be confirmed.

The developers will they be tempted yet? And what applications are suitable for the subscription? “I do not know to what extent this model will be embraced by publishers. For some applications, particularly those already paid download, subscription sense. For free applications, it’s complicated, less make them day to justify a payment from the consumer “judge Stephanie Baghdasarian.

the subscription may however also be considered as a complement or alternative to the in-app purchase. In a study published in May, Gartner found that mobile users spent 24% more in app purchases in paid downloads. The reason ? Flexibility. “Consumers tend to want to test the service before you leave money there.”

already Publishers have also the ability to combine multiple monetization schemes such as paid app in addition to in-app purchases. It is therefore plausible that Apple allows to combine subscriptions and in-app transactions. What developers ensure a minimum income. Implement because of the in-app does not guarantee that it will be used effectively and emerge revenue.

A good operation for enterprise apps

with the subscription, Apple will anyway provide flexibility over the terms of engagement and pricing. As for publishers, probably will they think over their apps as application services, that is to say changing, as is the case in the professional world with the cloud applications.

‘As a’ is the trend in the company with business models based on the payment for the use and recurring revenue. For enterprise software vendors, who for many years have had to turn the SaaS, open subscription in the iOS ecosystem is finally a continuation.

It should also be recalled Apple’s ambitions in the corporate world, including built around its partnership with IBM. The use of corporate apps is generally a long-term. The Market Publishers, offering their software subscription can therefore expect to benefit from the gradual reduction of the Apple board after one year (15% rather than 30%).

By making all the eligible applications subscriptions, Apple is anyway higher revenue from the App Store – while making a gesture toward the present publishers and developers on its platform. But the giant also adapts to applications of consumption mode, a usage billing. – As it did in music by launching its streaming service

 

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