Samsung raises revenue incentives to boost its apps store

Samsung raises revenue incentives to boost its apps store

Summary: South Korean electronics giant will team up with Electronic Arts to attract developers via "unusually strong" financial incentives in a bid to expand its library of games.

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Samsung has tied up with Electronic Arts (EA) to draw more developers to the South Korean tech giant's fledgling apps store by raising the level of financial incentives.

Mobile apps
Samsung hopes higher financial incentives will lure more developers to boost its apps store.

In a report Wednesday, Reuters said EA's mobile games publishing division, Chillingo, will spearhead the program called "100 precent Indie". It is so named because Samsung will let independent developers keep 100 percent of their revenue for six months, which the newswire notes is "unusually strong" compared with the usual 30 percent cut offered by other platforms like Apple.

"So anyone who joins the program can benefit from 100 percent revenue, which is unprecedented in our industry so far," said Chillingo co-founder Chris Byatte, in the article.

After six months, developers give Samsung a 10 percent revenue cut and keep the rest, before it rises to 20 percent the following year, according to Reuters. The cut goes up to 30 percent from the third year--similar to Apple's and Google's respective platforms.

The program is aimed at all developers, including "the established ones, the heavy-hitters to the one-man bands," Byatte said.

The higher revenue-share cuts can be crucial for smaller startups, noted Reuters. Electronic Arts had bought Chillingo--responsible for hits like Angry Birds--in 2009 in a deal reportedly worth $20 million.

While Samsung has managed to gain ground against rival Apple with its smartphones and tablets in many markets, it is now gearing up to challenge Apple's lead in the apps space.

 

Topics: Software Development, Samsung

About

Loves caption contests, leisurely strolls along supermarket aisles and watching How It's Made. Ryan has covered finance, politics, tech and sports for TV, radio and print. He is also co-author of best seller "Profit from the Panic". Ryan is an editor at ZDNet's Asia/Singapore office.

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2 comments
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  • I am curious on Samsung's end-game.

    If you do a Google trends on the "Galaxy" vs "Android:

    https://www.google.com/trends/explore#q=Galaxy,%20Android

    You can see that the "Galaxy" name is as well known as "Android" from a Google search standpoint. If this continues, people will associate the phone they want as "Galaxy" and not "Android" allowing Samsung to own the entire eco-system from games, apps and even advertising:

    http://venturebeat.com/2012/04/04/samsung-mobile-ad-network/

    Already, we see Samsung putting many proprietary features (bump to share) into their Galaxy line with a very custom skin. This might allow Samsung to replace the entire OS (Bada, Tizen), keep the Galaxy name and keep the lion's share of the entire eco-system.
    Bruizer
    • good point

      Samsung is shoring up its foothold in every corner, there's a piece here by Kevin today on their latest REX phones launched in India

      http://www.zdnet.com/in/samsung-unleashes-rex-phones-targets-emerging-markets-7000011356/
      Ryan Huang