Dan Burkhart, chief executive officer of Recurly, a payment and subscription management platform that works with more than 2,000 companies, said many of the app developers he regularly communicates with were enthusiastic Friday afternoon. . Larger companies with “motivation and reputation” would likely benefit from being able to direct their loyal customers elsewhere, he said.
Match Group, maker of dating apps Tinder and Hinge, is on track to pay Apple and Google — which control a similar app store for phones running Android software — more than $500 million in commissions. commissions this year, the company’s biggest expenditure, said Gary Swidler, Match’s chief financial officer. The company looked at ways to use Friday’s ruling to cut that bill as much as possible, including charging less for subscriptions paid on one of its sites, Mr. speak.
One analyst estimates that the change could save Match $80 million a year, but Mr. Swidler says there are too many questions to make such a forecast.
“Depending on what the rate of return will be, it will help us from a profitability perspective and it will allow us to invest more in our business and will also allow we pass on the benefits to the consumer,” he said.
Michael Love, founder and CEO of a Chinese dictionary app called Pleco, said the prospect of avoiding commissions – he pays Apple 15% – is good news. Even better? His ability to interact directly with customers in ways that App Store rules prevent, like sending promotional emails, refunds, and lookup old orders.
“I’m excited about the ability to pay without being held back by Apple,” he said.
Love, 39, said he hasn’t been able to reach many deals with other dictionary publishers because those publishers don’t want to pay commissions to both Apple and him and lose a lot of money.
Now, by avoiding Apple fees and working directly with publishers, he could potentially transform his business and become a “boutique e-book retailer.” , Mr. Love said. That could increase his revenue from about $500,000 a year to $5 million or $10 million, he said.
“It makes it possible for the little boys to compete,” he said.