Basically, they are reducing App Store commission to 15% from current 30% for small businesses earning up to $1 million per year. This reduced commission applies both to paid apps and in-app purchases. In-app purchases have been steadily growing over the years but the 30% commission was always an issue for app owners so hopefully this will have a positive impact on their growth in the future, at least for the smaller players that are just starting out. Although the details are yet to be released basic criteria will be:
- Existing developers who made up to $1 million in 2020 for all of their apps, as well as developers new to the App Store, can qualify for the program and the reduced commission.
- If a participating developer surpasses the $1 million threshold, the standard commission rate will apply for the remainder of the year.
- If a developer’s business falls below the $1 million threshold in a future calendar year, they can re-qualify for the 15% commission the year after.
The App Store’s standard commission rate of 30 percent remains in place for apps selling digital goods and services and making more than $1 million in proceeds, defined as a developer’s post-commission earnings.
Even with the reduced commission rate, for some it is still too steep to be considered as a viable option at least until some growth has been achieved. Thankfully, there are other payment solutions as well and we at AVIION have a substantial experience with different payment gateway integrations that would ensure a secure and hassle free payment process for your users. So, if you are looking to explore the ways you could monetize your OTT app reach out to us and we will give you our recommendations based on 11+ years of complete OTT chain process, including payments and monetization.