Apple Announces Major App Store Changes Including New Subscription Terms and Search Ads

appstoreadexampleApple's Phil Schiller recently sat down with several publications including The Loop and The Verge to detail some of the changes that are going to be made to the App Store under his reign, including major improvements to search, subscription access for all developers, App Store ads when searching for content, and some other smaller tweaks that should go a long way towards improving app discoverability.

Apple is opening up app subscriptions to all product categories, giving developers more options for selling their apps and additional ways to earn revenue. An app like Workflow or Fantastical, for example, could be sold on a subscription basis, with customers able to obtain it for a $5/year subscription fee.

With that change, developers will be able to charge $5 per year rather than just a flat $5 fee, for an ongoing revenue stream, and they'll also be able to offer a subscription that encompasses multiple apps. Apple also plans to introduce up to 200 new tiered pricing options across different currencies and territories for app subscriptions.

Subscription fee changes are also being implemented. Currently, Apple takes a 30 percent cut of subscription fees on the App Store, but now, if a customer stays subscribed to a service for multiple years, Apple will only take a 15 percent cut, leaving 85 percent of profits for developers. That works on a per customer basis, so for customers who subscribe to Netflix through Apple, Netflix will pay Apple 30 percent during the first year and 15 percent the second year.

Apple is adding ads to App Store search results, something that was hinted at earlier this year. Ads will be displayed when a search is conducted and developers will have opportunities to purchase those ads for better app exposure. There will be one ad on the search results page, which Apple will clearly denote as an ad. Ad content will be the same content available on the App Store, and ads will only be accepted from developers. Apple plans to distribute ads through an auction system.

"We've thought about how to carefully do it in a way that, first and foremost, customers will be happy with," Schiller says, adding that he believes the ad auction system in App Store search will be "fair to developers, and fair for indie developers, too."

Recently, the Apple TV Top Charts stopped displaying apps that a user has installed, and that's a change that's rolling out more widely. The "Featured" section in the App Store will change dynamically for each user, no longer displaying apps that are already installed and Apple plans to bring the Categories tab back to the App Store.

A Share sheet will be added as a new 3D Touch Quick Action for all apps, allowing app recommendations to be more easily shared without needing to access the App Store directly. Search is also seeing some significant improvements to make it easier to find exactly what you're looking for and it is one of the areas Apple is focusing on.

Schiller took over the App Store from Eddy Cue late last year, amid developer complaints about discoverability, the review process, poor communication, search results, and myriad other complaints. Schiller promised improvements and has been delivering on that promise. In an interview with The Verge, Schiller said there's a "renewed focus and energy" around the App Store.

Under Schiller's leadership, the App Store has been steadily improving across 2016, not even counting today's changes. The app review process takes as little as two days, featured app sections like Best New Apps are updated on a more regular basis, and Schiller has a secret team working on exploring changes that could be made to the App Store to introduce further improvement.

Apple plans to begin rolling out these changes over the next couple of months. Ads will be made available as part of a beta program next Monday. Subscriptions will be accessible to developers starting in the fall, while existing subscription apps will see changes to the revenue split on June 13.

Popular Stories

imac video apple feature

Apple Unveils First New Products of 2026

Monday January 26, 2026 1:55 pm PST by
Apple today introduced its first two physical products of 2026: a second-generation AirTag and the Black Unity Connection Braided Solo Loop for the Apple Watch. Read our coverage of each announcement to learn more:Apple Unveils New AirTag With Longer Range, Louder Speaker, and More Apple Introduces New Black Unity Apple Watch BandBoth the new AirTag and the Black Unity Connection Braided...
Apple Logo Black

Apple Just Made Its Second-Biggest Acquisition Ever After Beats

Thursday January 29, 2026 10:07 am PST by
Apple today confirmed to Reuters that it has acquired Q.ai, an Israeli startup that is working on artificial intelligence technology for audio. Apple paid close to $2 billion for Q.ai, according to sources cited by the Financial Times. That would make this Apple's second-biggest acquisition ever, after it paid $3 billion for the popular headphone and audio brand Beats in 2014. Q.ai has...
iPhone 5s

iPhone 5s Gets New Software Update 13 Years After Launch

Monday January 26, 2026 3:56 pm PST by
Alongside iOS 26.2.1, Apple today released an updated version of iOS 12 for devices that are still running that operating system update, eight years after the software was first released. iOS 12.5.8 is available for the iPhone 5s and the iPhone 6, meaning Apple is continuing to support these devices for 13 and 12 years after launch, respectively. The iPhone 5s came out in September 2013,...
Apple Creator Studio

Apple's Next Launch is Today

Tuesday January 27, 2026 2:39 pm PST by
Update: Apple Creator Studio is now available. Apple Creator Studio launches this Wednesday, January 28. The all-in-one subscription provides access to the Final Cut Pro, Logic Pro, Pixelmator Pro, Motion, Compressor, and MainStage apps, with U.S. pricing set at $12.99 per month or $129 per year. A subscription to Apple Creator Studio also unlocks "intelligent features" and "premium...
apple silicon 1 feature

Apple Responds to Skyrocketing RAM and Storage Chip Prices

Thursday January 29, 2026 2:40 pm PST by
On an earnings call with equity analysts today, Apple CEO Tim Cook responded to fast-rising RAM and SSD storage chip prices in the supply chain. Cook said that rising memory chip prices had a "minimal impact" on Apple's gross margin in the fourth quarter of the 2025 calendar year, but he does expect a "bit more of an impact" on the company's gross margin in the current quarter. Cook added ...

Top Rated Comments

rorschach Avatar
126 months ago
Wholeheartedly support changine the revenue split. Improved search is also sorely needed.

But I have a bad feeling app subscriptions are going to be abused the same way IAP are now.

An app like Workflow or Fantastical, for example, could be sold on a subscription basis, with customers able to obtain it for a $5/year subscription fee.
No, thank you. TextExpander switched to a subscription model, so I found another app (that's cheaper to boot). I have no desire to pay for software monthly.

And before anyone compares it to music subscriptions: no. A Spotify/Apple Music subscription gets you unlimited access to millions of songs, and even more as new music is released. Compare that to paying monthly fees for EACH app, that MAYBE sees a couple of updates a year. Imagine if we had to pay monthly for each album we wanted to listen to.

Now, that's less on Apple and more on developers to not abuse.

What would really help is upgrade pricing! Seriously; that's a no-brainer feature that I think just about every developer with a paid app supports.
Score: 60 Votes (Like | Disagree)
sinsin07 Avatar
126 months ago
Yikes. More subscriptions.
Score: 43 Votes (Like | Disagree)
Packdude Avatar
126 months ago
I can understand the subscription model. I don't like it as I want to be a cheapskate, but developing an app for a very long time is a drain on developers, I will just be very selective with what I use. Nothing wrong with that.
I would rather pay for upgrades than pay a subscription, especially if it's software that is used infrequently.
Score: 37 Votes (Like | Disagree)
iReality85 Avatar
126 months ago
Getting tired of ads and subscriptions for everything these days.
Score: 31 Votes (Like | Disagree)
JoEw Avatar
126 months ago
Phil Schiller is one of Apple's best execs, can't say I feel the same about Cue
Score: 23 Votes (Like | Disagree)
petsounds Avatar
126 months ago
Phil says he wants to keep it fair for the small developers, yet there will be an open auction for the search ad. Guess which developer is going to win those auctions? The one with big pockets. This solves nothing about app discoverability. All it really does is create an additional revenue stream for Apple.
Score: 16 Votes (Like | Disagree)