Microsoft To Match Apple's Revenue Split In New App Store

imageMicrosoft (NSDQ: MSFT) today announced some new details about its upcoming Windows Marketplace for Mobile that put it pretty much line with its app-store competition. For instance, Microsoft said developers will receive 70 percent of the revenues from each application sold, which matches the splits offered by Apple (NSDQ: AAPL), Google (NSDQ: GOOG) and Nokia (NYSE: NOK). Microsoft also said that developers can price applications as free, or sell them, starting as low as 99 cents.

Developers will have to pay an annual registration fee of $99, which will allow them to submit up to five applications. Microsoft will also provide additional testing and marketing support for that fee. Each additional app will cost $99. For more information, developers can visit, but more details will be announced this summer once developers can start submitting applications. The store will be available later this year once the first Windows Mobile 6.5 phones start shipping.

More after the jump

More questions answered:

Is Microsoft sharing revenues with the carrier?: Microsoft said the 70-30 split will come directly from the sale of the application, meaning that Microsoft is not giving a portion to the carrier first. That could change. “We are considering a share of revenue with mobile operators, but are not sharing specifics are this time.”

Billing mechanisms: End-users will purchase applications using a credit card, which is similar to Nokia’s Ovi store, and is different than Apple, which uses iTunes; Google, which uses its own Checkout system; and RIM (NSDQ: RIMM), which uses PayPal. In addition, Microsoft said at this time it will not be supporting subscriptions, but only one-time purchases.

On advertising: Microsoft declined to talk about how advertising will work inside an application, including whether developers would be required to use its own ad network. “We are not discussing advertising requirements for applications at this time.”


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