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Apple’s App Store revenue share from developers earning under $1 million is just 2%

Nearly 3% of these developers have generated over $38 billion in player spending, close to 98% of total App Store revenue.   | Photo Credit: Reuters

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App developers that have generated less than $1 million from Apple’s App Store this year account for only 2% of games revenue, according to app intelligence firm Sensor Tower.

This comes following Apple’s announcement that developers earning less than $1 million annually would be entitled to 85% of the revenue share.

The firm analysed 1,12,000 developers over the year, and noted that about 29,000 of them have earned revenue from at least one game. Nearly 3% of these developers have generated over $38 billion in player spending, close to 98% of total App Store revenue.

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Approximately half of all games publishers tracked generated less than $1,000 in player spending from their games, while 23% accumulated less than $10,000. Those earning less than $100,000 accounted for 90% of the total revenue.

Meanwhile, publishers earning between $1 million and $1.5 million accounted for 0.6% of all companies, generating 0.5% of total revenue.

The share of publishers making less than $1 million has shrunk, with more than 98% falling into this segment in 2018, and 97.3% in 2019.

Apple’s decision to reduce the revenue share to 15% for smaller businesses is a significant change in its longstanding policy of taking a 70/30 split, Sensor Tower noted.

The move will have little impact on Apple’s profits, but still shakes up the market and may lead to other platform holders following suit in a revenue share reduction.

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Printable version | Apr 20, 2021 1:44:08 AM | https://www.thehindu.com/sci-tech/technology/app-store-gets-2-revenue-from-small-developers/article33330964.ece

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