Developers earning less than $1 million in annual revenue will have to pay lower revenue cuts.
The 30% cut that Apple takes from any and all revenue that apps and games make off of the App Store has been a contentious topic for a long time, and really came to a head earlier this year thanks to their ongoing legal dispute with Epic Games. It seems, however, that they’re relaxing their stance on that to some extent.
The company has announced (via The Verge) that, starting January 1, 2021, they will be slashing their revenue cut to 15% for all indie app developers, thanks to the new App Store Small Business Program. Essentially, if an app is making less than $1 million in revenue per year, it only needs to pay half as much of the revenue cut and cut from in-app purchases compared to what has been the standard up until now.
As per apple, the vast majority of developers using the App Store will be able to avail of this program, though they haven’t provided exact numbers for what that vast majority entails exactly.
“Small businesses are the backbone of our global economy and the beating heart of innovation and opportunity in communities around the world,” says Apple CEO Tim Cook. “We’re launching this program to help small business owners write the next chapter of creativity and prosperity on the App Store, and to build the kind of quality apps our customers love. The App Store has been an engine of economic growth like none other, creating millions of new jobs and a pathway to entrepreneurship accessible to anyone with a great idea. Our new program carries that progress forward — helping developers fund their small businesses, take risks on new ideas, expand their teams, and continue to make apps that enrich people’s lives.”
Apple says more information on the App Store Small Business Program will be coming in December.