Introduction
In a bid to enhance the user experience and provide developers with more flexibility, Apple has started experimenting with a feature on the App Store that allows developers to offer ‘contingent pricing’ for subscriptions. This innovative feature enables developers to bundle subscriptions for two apps at a discounted price, making it an attractive option for indie developers looking to promote their work.
What is Contingent Pricing?
Contingent pricing is a feature that allows developers to charge a discounted price even if the app’s subscription goes up, as long as consumers have subscribed to the other app in the bundle. This means that users can enjoy multiple apps at a reduced cost, while developers can increase their revenue through bundled subscriptions.
Benefits for Developers
The introduction of contingent pricing is a significant development for developers, particularly indie developers who often struggle to promote their work. By offering discounted prices on bundles of their apps, developers can:
- Increase user engagement: By providing users with multiple apps at a reduced cost, developers can encourage them to explore more content and increase overall app usage.
- Boost revenue: Developers can increase their revenue through bundled subscriptions, even if individual app prices go up.
- Promote their work: Contingent pricing enables developers to bundle their apps together, making it easier for users to discover new titles.
How Does the Feature Work?
According to Apple’s developer blog, the company handles all complexity, including eligibility checks and payments, allowing developers to focus on creating great content. Pete Hare, a senior engineering manager at Apple, explained that the company provides:
- Seamless in-app purchases: Users can purchase apps directly from within other apps or through email links.
- One-step subscription process: Subscriptions are processed smoothly, ensuring users don’t encounter any issues.
Pilot Program and Future Plans
Apple has announced that they’re currently piloting the feature and will be onboarding more developers in the coming months. If you’re interested in implementing contingent pricing in your app, you can start planning today and sign up to get notified when more details are available in January.
Apple’s Motivation Behind Contingent Pricing
The introduction of contingent pricing is seen as a strategic move by Apple to make the App Store more attractive to developers before the EU’s Digital Markets Act (DMA) comes into effect next year. The DMA asks app distribution platforms like Apple’s App Store and Google’s Play Store to allow users to install apps through alternative ways.
Marketing Language on Contingent Pricing
Apple’s marketing language on this feature highlights its capabilities in handling complex payment processing, even when multiple apps and developers are involved. This indicates that the company is building a robust infrastructure to support emerging alternative app stores.
Potential Impact of Contingent Pricing
The introduction of contingent pricing has the potential to transform the way users interact with apps and how developers monetize their content. Some possible outcomes include:
- Increased user engagement: Users will have more reasons to explore new apps, leading to increased overall usage.
- New revenue streams for developers: Developers can tap into bundled subscription revenue, providing a fresh source of income.
- More innovative app design: The possibility of offering discounted prices on bundles may inspire developers to create more interactive and engaging content.
Conclusion
The introduction of contingent pricing is an exciting development that will likely change the way users interact with apps and how developers monetize their content. As Apple continues to pilot this feature, it’s essential for developers to take note of its potential benefits and plan accordingly. By embracing this innovation, both users and developers can reap rewards from a more connected app ecosystem.
References
- "Apple starts experimenting with ‘contingent pricing’ on the App Store" (9to5Mac)
- "Apple’s contingent pricing feature: A game-changer for developers?" (TechCrunch)
- "What is the Digital Markets Act and how will it affect app stores?" (DMA)
