Apple to shut down the App Store affiliate program
- Friday, August 3rd, 2018
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Apple is closing down its App Store affiliate program that enabled services that recommended apps or in-app content to share in a small percentage of the revenue generated. The move, which will come into effect on 1 October, will likely have a large impact on sites that provide editorial reviews of mobile games and other apps.
An email sent to members of the affiliate program said that it was being closed due to “the launch of the new App Store on both iOS and macOS, and their increased methods of app discovery.” The implication seems to be that Apples own app discovery algorithms are now sufficiently driving revenues, and it no longer needs sites to recommend and link to specific apps and games.
The announcement comes just over a year after Apple drastically reduced the programs revenue sharing rates for apps, cutting them from seven per cent to 2.5 per cent. Affiliates will still be able to earn revenues through linking to movies, TV shows, music and books within the iTunes Store, as well as to subscription to Apple Music.
A recent report by Sensor Tower suggested that Apple brought in $16.3bn (£12.5bn) in mobile gaming revenues in H1 2018, up from $14.2bn a year ago. While there are no figures available to show how much of that was via affiliate recommendations, the fact that Apple is closing the program down suggests its no longer a major driver of sales.
The announcement led to strong criticism from sites that relied on the program for revenues, in particular sites that review apps and games. Eli Hodapp, editor at mobile gaming site TouchArcade said “it genuinely feels like Apple does not want us to exist anymore”, while Marianne Schultz, editor-in-chief of AppShopper, said that “third-party sites have always done a better job of highlighting great apps and deals”.
“I genuinely have no idea what TouchArcade is going to do,” wrote Hodapp in a blog post on the announcement. “Through thick and thin, and every curveball the industry threw at us, we always had App Store affiliate revenue – which makes a lot of sense as we drive a ton of purchases for Apple.
“I dont know how the takeaway from this move can be seen as anything other than Apple extending a massive middle finger to sites like TouchArcade, AppShopper, and many others who have spent the last decade evangelising the App Store and iOS gaming.”