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Microsoft Store's Promised Larger Revenue Split Comes into Effect, Offers 95 Percent to Developers: Report

Microsoft Store's Promised Larger Revenue Split Comes into Effect, Offers 95 Percent to Developers: Report

By Tasneem Akolawala | Updated: 7 March 2019 18:49 IST

Microsoft Store app developers will now get 95 percent of the revenue

Highlights

Microsoft had announced non-game apps will get 95 percent revenue in 2018
In 2019, the new revenue model has finally come into effect
There are few exceptions, where apps will get only 85 percent share

Last year at the Build developer conference, Microsoft announced that it plans to introduce a new revenue share model for the developers publishing their apps on Microsoft Store. The new model was supposed to go into effect sometime in 2018, but that didn't happen. However, three months into 2019, Microsoft has finally reportedly introduced the new revenue sharing model on the Microsoft Store for Windows and is offering 95 percent of the share to developers, keeping only 5 percent for itself.

The new revenue model includes purchases of applications or any in-app products, when a customer uses a deep link to make purchases in Microsoft Store. There are a few exceptions, like game apps will still remain on the old structure i.e. revenue split of 70/30. Furthermore, The Inquirer reports that all apps downloaded after an affiliate link or click-through, will cost a little more, and the revenue split in those cases will be 85/15.

Notably, the new Microsoft Store fee structure will apply to apps for Windows 10, Windows 8.x and/ or Windows Phone 8.x, Windows Mixed Reality, Windows Phone, and Surface Hub, but will exclude the Xbox consoles. With the new revenue model, the Redmond-based company was hoping to attract more developers to its platforms.

Last year, Google also changed its subscription revenue-sharing policy from 70:30 to 85:15, but it is applicable only when publishers retain users for a minimum period of 12 months. Similarly, Apple also splits subscription revenue 70:30 with developers for the first 12 months of a subscription product. Once the 12 month period is crossed, Apple increases the split to 85:15 in favour of the developer.

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