• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

The U.S. spent $30 billion to ditch textbooks for laptops and tablets: The result is the first generation less cognitively capable than their parents

2

Peter Thiel and other tech billionaires are publicly shielding their children from the products that made them rich

3

A Trump Account could make your kid a millionaire by 45—but financial experts say the app's projections come with a catch

1

The U.S. spent $30 billion to ditch textbooks for laptops and tablets: The result is the first generation less cognitively capable than their parents

2

Peter Thiel and other tech billionaires are publicly shielding their children from the products that made them rich

3

A Trump Account could make your kid a millionaire by 45—but financial experts say the app's projections come with a catch
TechMobile Executive

Apple’s New Rules Are Great, But No One Is Going to Download Your App

By
Mathew Ingram
Mathew Ingram
Down Arrow Button Icon
By
Mathew Ingram
Mathew Ingram
Down Arrow Button Icon
June 9, 2016, 3:28 PM ET
LinkedIn Corp. Expands in China With Local Site Limiting Content
Bloomberg via Getty Images
Add Fortune on Google for similar content.

In a fairly dramatic announcement on Wednesday, Apple executive Phil Schiller said that the company is making some dramatic changes to its multibillion-dollar app store. The most significant of these changes is that Apple will now support subscriptions in a much wider range of apps than it did before, and it will be giving the publishers of those apps a bigger cut of the proceeds.

From a media company perspective, this amounts to the classic glass half-full, glass half-empty kind of deal. On the one hand, it will be easier and more appealing for publishers to offer subscriptions than it has ever been before. Under Apple’s new terms, if a user remains a subscriber for more than a year, the publisher gets to keep 85% of the revenue instead of the 70% they used to get.

As the Nieman Journalism Lab points out, however, one downside of this new arrangement is that it is likely to trigger an explosion of new subscription-based apps. In the past, only media companies were allowed to offer recurring payments, but now every gaming app and entertainment service and workplace productivity app on the planet is going to start offering subscriptions. As Joshua Benton notes:

That means that many, many more apps will likely start charging for subscriptions—including productivity apps for devices like the iPad Pro, for instance, and lots and lots of games. In that environment, I wonder if consumers will see a news app as “just one more monthly bill.”

In a way, this is an extension of the existential problem many newspapers and magazines have when it comes to paywalls. Every publisher out there wants to think that they will be the one app that their faithful readers sign up for—or at least that they will be in the top five. But there are so many other media outlets and entertainment services like Netflix clamoring for their attention and asking for a monthly fee. How many of those things is one person going to sign up for?

This is the dilemma of an increasingly fragmented media environment in which cable TV is getting unbundled into dozens of competing services such as Amazon Prime Video (AMZN), Hulu, and Watchable, and the news and information market consists of thousands of newspapers, hundreds of magazines, and an increasing number of smaller players such as The Information, Quartz, or Ben Thompson’s Stratechery. One problem is who has time to watch or read all of that, and the other is who can afford it.

Get Data Sheet, Fortune’s technology newsletter.

As we’re talking about the Apple (AAPL) app store (and the Google Play store because Google (GOOGL) appears to be matching Apple’s move), it’s worth remembering that—statistically speaking at least—no one is going to download your app. Recode recently declared that “the app boom is over,” and while that might be a bit of an overstatement, it’s probably not that far off the mark.

According to research from comScore (SCOR) in 2014, more than 65% of smartphone users in the United States downloaded an average of zero apps per month. Zero.

Other studies have shown that the average smartphone user has about 30 apps on his or her phone but only uses three or four of them on any regular basis. A recent survey from Nomura said that even the top 15 app publishers saw downloads fall by an average of about 20% year over year. Call it app fatigue or whatever you like, but it is happening.

So if you’re Snapchat or Uber or Facebook (FB) or YouTube, your chances of having lots of people downloading and using your app are pretty good. If you are almost anyone else—and especially if you are a small media outlet—you are climbing a vast mountain of indifference. You may be getting 85% of whatever money comes in through those app subscriptions, which is great, but it’s probably not going to make the difference between life and death for you or your business.

That doesn’t mean you shouldn’t have an app, although some media companies are making that decision for a variety of reasons. Even if you have a small audience of die-hard fans using and paying for your app, that’s still a worthwhile relationship, and something you can build on. But if an app (or a paywall, for that matter) is your only strategy for growth and revenue generation, you’re probably doomed—unless you happen to be the New York Times or the Washington Post.

About the Author
By Mathew Ingram
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Tech

Trinidad and Tobago signs deals with U.S. companies for data centers, despite history of chronic water shortages and intermittent supply
AIData centers
Trinidad and Tobago signs deals with U.S. companies for data centers, despite history of chronic water shortages and intermittent supply
By Anselm Gibbs and The Associated PressJuly 12, 2026
16 hours ago
Want to earn nearly $100,000 within 5 years of graduating? Study engineering, Fed research says
SuccessThe Promotion Playbook
Want to earn nearly $100,000 within 5 years of graduating? Study engineering, Fed research says
By Orianna Rosa RoyleJuly 12, 2026
19 hours ago
A girl looking at her laptop screen
InnovationEducation
The U.S. spent $30 billion to ditch textbooks for laptops and tablets: The result is the first generation less cognitively capable than their parents
By Sasha RogelbergJuly 12, 2026
19 hours ago
Peter Thiel and other tech billionaires are publicly shielding their children from the products that made them rich
Big TechTech
Peter Thiel and other tech billionaires are publicly shielding their children from the products that made them rich
By Marco Quiroz-GutierrezJuly 12, 2026
19 hours ago
Zhenghua Yang
SuccessSmall Business
At 18, doctors gave him three hours to live. He played video games from his hospital bed—and now, he’s built a $10 million-a-year video game studio
By Preston ForeJuly 12, 2026
19 hours ago
Photo: James Murdoch
Big TechJames Murdoch
James Murdoch may have reaped as much as $7.5 billion from his pre-IPO investment in Elon Musk’s SpaceX
By Claire AtkinsonJuly 12, 2026
20 hours ago

Most Popular

The U.S. spent $30 billion to ditch textbooks for laptops and tablets: The result is the first generation less cognitively capable than their parents
Innovation
The U.S. spent $30 billion to ditch textbooks for laptops and tablets: The result is the first generation less cognitively capable than their parents
By Sasha RogelbergJuly 12, 2026
19 hours ago
Peter Thiel and other tech billionaires are publicly shielding their children from the products that made them rich
Big Tech
Peter Thiel and other tech billionaires are publicly shielding their children from the products that made them rich
By Marco Quiroz-GutierrezJuly 12, 2026
19 hours ago
A Trump Account could make your kid a millionaire by 45—but financial experts say the app's projections come with a catch
Personal Finance
A Trump Account could make your kid a millionaire by 45—but financial experts say the app's projections come with a catch
By Sydney LakeJuly 12, 2026
20 hours ago
The U.S. and Iran can't agree on fully reopening the Strait of Hormuz. The solution could be straight out of the Old Testament
Middle East
The U.S. and Iran can't agree on fully reopening the Strait of Hormuz. The solution could be straight out of the Old Testament
By Jason MaJuly 11, 2026
1 day ago
Trump’s time is running out to avoid a nightmare Strait of Hormuz scenario
Energy
Trump’s time is running out to avoid a nightmare Strait of Hormuz scenario
By Jordan BlumJuly 12, 2026
24 hours ago
Wyoming officials say Meta’s 715,000-square-foot data center is responsible for contaminating its water system with a rare bacterium
Environment
Wyoming officials say Meta’s 715,000-square-foot data center is responsible for contaminating its water system with a rare bacterium
By Sasha RogelbergJuly 10, 2026
3 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.