Apple is planning a major overhaul of its App Store, including the introduction of a new subscription model for developers and the implementation of a paid search ad program, SVP Phil Schiller indicated in interviews with The Verge andThe Telegraph ahead of the company's Worldwide Developer Conference in San Francisco next week.
The move may help to offset flagging iPhone sales.
To encourage developers to sell their apps on a subscription basis, Apple plans to change the current 70/30 revenue-sharing structure. If a customer keeps a subscription for more than a year, the company will reduce its current 30 percent take to 15 percent, increasing the developer's share.
In addition, Apple will operate a paid search program much like Google AdWords' auction model. Apple will feature an ad inside a blue box that is based on the type of search terms the user enters. Advertising fees will be charged on a per-click basis.