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

Trendingnow

1

Jensen Huang says ‘a lot’ of six-figure jobs in plumbing and construction will soon be unlocked because someone needs to build new AI centers

2

The labor market could become so backward that the economy will have to shed jobs to keep unemployment steady

3

Bars, bowling alleys and movie theaters cost too much to run and visit. Americans have run out of places to hang out and we're paying with our health

1

Jensen Huang says ‘a lot’ of six-figure jobs in plumbing and construction will soon be unlocked because someone needs to build new AI centers

2

The labor market could become so backward that the economy will have to shed jobs to keep unemployment steady

3

Bars, bowling alleys and movie theaters cost too much to run and visit. Americans have run out of places to hang out and we're paying with our health
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
  • TikTok icon
  • YouTube icon

Latest in Tech

Wall Street’s favorite bet comes undone as chips whipsaw market
InvestingChips
Wall Street’s favorite bet comes undone as chips whipsaw market
By Ryan Vlastelica and BloombergAugust 2, 2026
3 hours ago
Jefferies analyst calls out ‘simple-minded’ criticism of SpaceX’s governance
InvestingCorporate Governance
Jefferies analyst calls out ‘simple-minded’ criticism of SpaceX’s governance
By Alastair Marsh and BloombergAugust 2, 2026
3 hours ago
lp
SuccessEntrepreneurship
‘It’s really not for the faint of heart’: This 29-year-old CEO became a business owner, doubled revenue in 3 years, and learned what car not to drive
By Nick LichtenbergAugust 2, 2026
7 hours ago
Hudson Leogrande, the founder and CEO of popular hoodie brand Comfrt
SuccessEntrepreneurs
He was homeless at 16. Now, he sits on the board of David Beckham’s wellness company and his business is about to hit $1 billion in revenue
By Emma BurleighAugust 2, 2026
7 hours ago
SpaceX’s record IPO is helping spur a new wave of startups aiming for orbit and opening a vast new market beyond Earth
Startups & VentureAerospace
SpaceX’s record IPO is helping spur a new wave of startups aiming for orbit and opening a vast new market beyond Earth
By Marco Quiroz-GutierrezAugust 2, 2026
8 hours ago
SpaceAI could be Southeast Asia’s edge against El Niño—if governments actually use it
AsiaSatellites
SpaceAI could be Southeast Asia’s edge against El Niño—if governments actually use it
By Karryl Kim Sagun Trajano and Iuna TsyrulnevaAugust 2, 2026
14 hours ago

Most Popular

Jensen Huang says ‘a lot’ of six-figure jobs in plumbing and construction will soon be unlocked because someone needs to build new AI centers
Success
Jensen Huang says ‘a lot’ of six-figure jobs in plumbing and construction will soon be unlocked because someone needs to build new AI centers
By Preston ForeAugust 1, 2026
1 day ago
The labor market could become so backward that the economy will have to shed jobs to keep unemployment steady
Economy
The labor market could become so backward that the economy will have to shed jobs to keep unemployment steady
By Jason MaAugust 1, 2026
19 hours ago
Bars, bowling alleys and movie theaters cost too much to run and visit. Americans have run out of places to hang out and we're paying with our health
North America
Bars, bowling alleys and movie theaters cost too much to run and visit. Americans have run out of places to hang out and we're paying with our health
By Catherina GioinoAugust 2, 2026
9 hours ago
Most billionaires are stuck in 'slow philanthropy.' MacKenzie Scott gave away $26 billion and won't stop until 'the safe is empty'
Success
Most billionaires are stuck in 'slow philanthropy.' MacKenzie Scott gave away $26 billion and won't stop until 'the safe is empty'
By Sydney LakeAugust 2, 2026
9 hours ago
Millennials say they’ll refuse to care for aging boomer parents—but they’ll be forced to as their inheritance shrinks to 40 cents on the dollar
Personal Finance
Millennials say they’ll refuse to care for aging boomer parents—but they’ll be forced to as their inheritance shrinks to 40 cents on the dollar
By Nick LichtenbergJuly 31, 2026
2 days ago
Jensen Huang says this is the greatest time in history to start a business—and his advice is to stop overthinking it: 'How hard can it be?’
Success
Jensen Huang says this is the greatest time in history to start a business—and his advice is to stop overthinking it: 'How hard can it be?’
By Preston ForeJuly 31, 2026
2 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.