Handango squeezing phone app developers?

Handango may be putting excess pressure on developers of mobile software to supply more of their revenues, according to a leaked rate card allegedly supplied to BGR. Known as the primary portal for purchasable software for BlackBerry, Symbian, and Windows Mobile smartphones, the store operator is purportedly set to significantly increase the amount of revenue collected from developers hoping to use the distribution system. Small developers who sell less than $250,000 in gross revenue will see exactly half of their income stripped from each sale -- up from 40 percent, Handango reportedly says. More profitable firms will see even more money siphoned away, with all businesses selling between $250,000 and $1 million supplying 60 percent of their revenue and all larger outlets conceding 70 percent.

The notice will be made public within a few days and should see the new distribution agreement take effect by March 15th, the alleged source indicates.

Such a move will create a less friendly environment for many mobile software developers, many of whom are often forced to use Handango to reach a majority of smartphone users on some cellular carriers, such as AT&T. Providers supplying Handango are not required to block third-party apps downloaded from alternative sources but often promote Handango as the primary outlet for new applications.

The news comes just days before Apple is expected to unveil plans for its own software development kit (SDK) and its implementation of third-party native applications for the iPhone, both of which will determine how readily programmers can create and sell applications for the device. Most reports have suggested Apple may ask developers to undergo a certification process and offer their apps through iTunes rather than as downloads through separate websites.

Filed under: iPhone, industry, developer
Other story tags: BlackBerry, Windows Mobile, Symbian, Handango