Hot Takes — The New App Store Small Business Program

Apple announced its new App Store Small business program which reduces fees from 30% to 15% for apps making less than $1m per year. We discuss the potential impact of this new program and what it means for app developers. Here's what we cover in the episode: (1:32) Is this a good thing or a bad thing? (For once, David takes the cynical view!) (4:39) 97% of developers using RevenueCat qualify for the program. (7:13) What this means for ad spend, CAC, and LTV ratios. (9:26) Doing the math: How much of a difference can this really make? (14:16) 97% of developers are affected by this change — representing only 5% of all App Store revenue. (18:56) What happens if you cross the $1M revenue threshold? (26:00) The $1M “magic number”; the 85/15% split. (36:35) How Apple could help different types of businesses succeed in the App Store; Kindle.