{"id":16571,"date":"2016-11-17T21:42:25","date_gmt":"2016-11-18T02:42:25","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/app-store\/"},"modified":"2016-11-17T21:42:25","modified_gmt":"2016-11-18T02:42:25","slug":"appily-ever-after-a-digital-distribution-challenge","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/appily-ever-after-a-digital-distribution-challenge\/","title":{"rendered":"Appily Ever After? A Digital Distribution Challenge"},"content":{"rendered":"

[1]<\/a> The Apple App Store radically altered the way people buy and receive software. Launched in 2008, the App Store has been a huge success for Apple thus far.\u00a0 As of July 2016, there are over two million apps on the App Store, which have been downloaded 130 billion times since the App Store launch.[2]<\/a> \u00a0That\u2019s a lot of games of Candy Crush.\u00a0 However, Apple\u2019s constant iOS upgrades cause challenges in the form of performance issues and increased work for the app developers.\u00a0 How can Apple motivate developers to continuously spend time and money on updating all these apps?<\/p>\n

 <\/p>\n

DIGITAL DISTRIBUTION\u00a0SUCCESS<\/strong><\/p>\n

By 2008\u2019s App Store launch, Apple had become experts at digital distribution via the iTunes store, which began the process of acclimating consumers to spending money on pure digital content rather than purchasing a physical CD or DVD. \u00a0The App Store presents a different spin on this business model. \u00a0The App Store contains a digital marketplace, making third-party apps convenient, immediate, and accessible. \u00a0Unlike the iTunes store, which sells already created media, the App Store relies on developers motivated to create iOS content.\u00a0 Apple takes 30% percentage of the revenue of an app.[3]<\/a> \u00a0The developers gain 70% revenue and access to millions of instant customers, which allows developers to create overnight successes, such as Rovio\u2019s Angry Birds<\/em> or more recently the summer hit, Niantic\u2019s Pok\u00e9mon Go<\/em>. \u00a0The App Store\u2019s operating model involves the distribution of the content and the maintenance of the App Store standards.<\/p>\n

\"abba_ios_icon01_370x370\"<\/a><\/p>\n

Angry Birds by Rovio. Source<\/strong>: http:\/\/assets-production.rovio.com\/s3fs-public\/styles\/product_grid_image\/public\/Game%20icons\/abba_ios_icon01_370x370.jpg?itok=zfIuiV0o, accessed Nov 2016.<\/p>\n

 <\/p>\n

NOT COMPLETELY SWEET<\/strong><\/p>\n

Overall, apps have provided $50 billion revenue to developers.[4]<\/a>\u00a0 Although that sounds impressive, the majority of app developers don\u2019t make much money: \u201c72% make less than $5,000 per month and 51% make $500 or less.\u201d[5]<\/a> \u00a0One issue comes from pricing: while apps were often at least $0.99 in the earlier days of the App Store, nowadays free-to-play apps have become the norm, which further hinders the ability for developers to make enough revenue to cover their development costs.<\/p>\n

Once an app is released, however, the developer cannot just sit back and watch the revenue come\u00a0in. \u00a0Whenever Apple upgrades its software, app developers must update their apps to keep the compatibility up-to-date, or else take down the app. \u00a0This presents a problem for both the customer and the app developer.\u00a0 Although an increasing number of apps are free, many include in-app purchases. The price paid does not entitle one\u00a0to a \u201cpermanent\u201d product. \u00a0I looked at the Terms and Conditions for a few apps and noticed that app developers often include the right to suspend or disable access to the app at any time \u201cwithout notice.\u201d[6]<\/a><\/p>\n

If an app does not function, a customer can report the issue, after which Apple might refund the customer in the case of \u201ctechnical problems [that] prevent or unreasonably delay delivery.\u201d[7]<\/a>\u00a0 However, a refund does not solve the customer satisfaction piece.\u00a0 How does a customer feel when a beloved app becomes inoperable?<\/p>\n

 <\/p>\n

A “SHOCKING” REMOVAL<\/strong><\/p>\n

For example, a popular videogame, BioShock, was re-developed for iOS by developer 2K.\u00a0 However, when Apple upgraded to a new iOS in mid-2015, the game no longer functioned, leaving frustrated customers with a broken game.[8]<\/a><\/p>\n

\"bioshockios\"<\/a><\/p>\n

BioShock’s iOS logo. Source<\/strong>: http:\/\/vignette1.wikia.nocookie.net\/bioshock\/images\/f\/fe\/BioShockiOS.png\/revision\/latest?cb=20150412194246<\/a>, accessed Nov 2016.<\/p>\n

 <\/p>\n

As of November 3, 2016, the game is still unplayable and 2K removed the game from the App Store, noting on the 2K website, \u201cWe are working to update the game as soon as possible to include iOS version 9 compatibility.\u201d[9]<\/a><\/p>\n

 <\/p>\n

APP STORE CHANGES<\/strong><\/p>\n

In June, 2016, Apple announced \u201cimprovements\u201d to the App Store, including stricter clean-up by aggressively removing dysfunctional apps. \u00a0Developers are given 30 days to fix the app before the app is deleted.[10]<\/a> \u00a0Removals during October increased by 238%.[11]<\/a><\/p>\n

\"screen-shot-2016-11-17-at-8-59-32-pm\"<\/a><\/p>\n

Source: https:\/\/tctechcrunch2011.files.wordpress.com\/2016\/11\/app-store-purge-october-2016.png?w=680&h=484<\/a>, accessed Nov 2016.<\/p>\n

 <\/p>\n

Apple also launched new initiatives for developers to increase market share, such as introducing ads in the search bar.[13]<\/a>\u00a0 Additionally, Apple will incentivize developers with\u00a0apps that have a subscription model, motivating them to keep updating their apps: if a subscribing customer stays for a second year, the revenue becomes an 85-15 split (instead of 70-30).[14]<\/a> \u00a0However, this financial incentive only covers subscription-based apps, a model which lends itself well to certain types of content (such as media\/news) but not others (such as games).<\/p>\n

 <\/p>\n

AN \u2018APPY FUTURE?<\/strong><\/p>\n

Ultimately Apple needs to provide more support for non-subscription-model apps and help provide ways for old apps to continue to function with new iOS updates, perhaps through emulation of the old iOS within the app. \u00a0Apple needs to be more aware of the effect it has on developer costs whenever the constant digital software updates come along.\u00a0 Otherwise, app developers will be less financially motivated in the future to continue to create quality apps. \u00a0Customers will be more wary when they purchase or pay for services in apps, and less likely to spend money, creating a vicious cycle of lower overall revenue.<\/p>\n

(800 words)<\/p>\n

[1]<\/a> Picture Source: http:\/\/media.gamerevolution.com\/images\/galleries\/1059\/maxresdefault.jpg<\/a>, accessed Nov 2016.<\/p>\n

[2]<\/a> Jordan Golson, \u201cApple\u2019s App Store now has over 2 million apps,\u201d The Verge<\/em>, Jun 13, 2016, http:\/\/www.theverge.com\/2016\/6\/13\/11922926\/apple-apps-2-million-wwdc-2016<\/a>, accessed Nov 2016.<\/p>\n

[3]<\/a> Apple, \u201cSubscriptions,\u201d https:\/\/developer.apple.com\/app-store\/subscriptions\/<\/a>, accessed Nov 2016.<\/p>\n

[4]<\/a> Jordan Golson.<\/p>\n

[5]<\/a> Phil Johnson, \u201cHow to make money as an independent developer,\u201d IT World<\/em>, August 6, 2015, http:\/\/www.itworld.com\/article\/2957215\/development\/how-to-make-money-as-an-independent-developer.html<\/a>, accessed Nov 2016.<\/p>\n

[6]<\/a> Apple, \u201cLicensed Application End User License Agreement,\u201d http:\/\/www.apple.com\/legal\/internet-services\/itunes\/appstore\/dev\/stdeula\/<\/a>, accessed Nov 2016.<\/p>\n

[7]<\/a> Apple, \u201cTerms and Condititions,\u201d http:\/\/www.apple.com\/legal\/internet-services\/itunes\/us\/terms.html<\/a>, accessed Nov 2016.<\/p>\n

[8]<\/a> Chloi Rad, \u201cBioShock iOS port removed from app store,\u201d IGN<\/em>, Sept 24, 2015, http:\/\/www.ign.com\/articles\/2015\/09\/24\/bioshock-ios-port-removed-from-app-store<\/a>, accessed Nov 2016.<\/p>\n

[9]<\/a> 2K, November 3, 2016, http:\/\/support.2k.com\/hc\/en-us\/articles\/206357388–IOS-BioShock-temporarily-removed-from-the-App-Store-<\/a>, Accessed Nov 2016.<\/p>\n

[10]<\/a> Apple, \u201cApp Store Improvements,\u201d https:\/\/developer.apple.com\/support\/app-store-improvements\/<\/a>, accessed Nov 2016.<\/p>\n

[11]<\/a> Sarah Perez, \u201cApple\u2019s big App Store purge is now underway,\u201d Nov 15, 2016, https:\/\/techcrunch.com\/2016\/11\/15\/apples-big-app-store-purge-is-now-underway\/<\/a>, accessed Nov 2016.<\/p>\n

[13]<\/a> Apple, \u201c性视界 Ads,\u201d https:\/\/developer.apple.com\/app-store\/search-ads\/<\/a>, accessed Nov 2016.<\/p>\n

[14]<\/a> Apple, \u201cSubscriptions,\u201d https:\/\/developer.apple.com\/app-store\/subscriptions\/<\/a>, accessed Nov 2016.<\/p>\n","protected":false},"excerpt":{"rendered":"

How can Apple motivate developers to continuously spend time and money on updating their apps?<\/p>\n","protected":false},"author":2195,"featured_media":16572,"comment_status":"open","ping_status":"closed","template":"","categories":[2357,1067,2358],"class_list":["post-16571","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry","category-app-store","category-apple","category-digital-distribution"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-rctom\/assignment\/digitization-challenge-2016\/","yoast_head":"\nAppily Ever After? 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