Apple Shakes Up App Store with Contingent Pricing: Discounts, Bundles, and New Competition

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Apple’s App Store, a behemoth in the mobile app world, is set to undergo a significant shift with the introduction of “contingent pricing.” This new feature, currently in pilot testing, empowers developers to offer discounted subscriptions to their apps based on users’ existing subscriptions to other apps, both within their own portfolio and across competitors. This opens up a Pandora’s box of possibilities for app developers and users alike, potentially reshaping the competitive landscape of the App Store.

Key Highlights:

  • Apple introduces “contingent pricing,” allowing developers to offer discounted subscriptions based on existing subscriptions.
  • The feature applies to both in-house and competitor apps,¬†potentially shaking up App Store dynamics.
  • Developers see opportunity to attract and retain users,¬†while users may benefit from bundled discounts and increased choice.
  • Concerns remain about Apple’s control over the App Store and potential anti-competitive practices.

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Unlocking New Strategies:

Imagine being a fitness app developer. With contingent pricing, you could offer a discounted subscription to your yoga app to users who are already subscribed to your running app. This incentivizes them to try a new offering within your ecosystem, boosting user engagement and potentially leading to increased revenue. The possibilities extend beyond in-house offerings. You could collaborate with a meditation app developer, offering users of their app a discounted subscription to your fitness app, fostering cross-promotion and attracting new users.

Benefits for Users:

Users stand to gain from this new dynamic as well. Imagine being a music aficionado subscribed to Spotify. With contingent pricing, you might snag a discounted subscription to a music production app, igniting your creative side. The potential for bundled discounts and personalized offers based on existing subscriptions could make the App Store a more enticing and cost-effective place to explore new apps.

Competition and Concerns:

While the potential benefits are undeniable, concerns linger about Apple’s control over the App Store and the potential for anti-competitive practices. Some developers worry that larger companies with diverse app portfolios could leverage contingent pricing to stifle competition from smaller players. Additionally, Apple’s 30% revenue cut on in-app purchases remains a contentious issue, with some arguing that it could disincentivize developers from offering significant discounts through contingent pricing.

The Road Ahead:

The pilot testing of contingent pricing marks a significant step for the App Store and the mobile app ecosystem as a whole. Its success hinges on a delicate balance between empowering developers and users while ensuring a fair and competitive playing field. As the feature rolls out in the coming months, it will be fascinating to see how developers leverage it to attract and retain users, and how users respond to the new landscape of discounted subscriptions and cross-app synergies.

Apple’s “contingent pricing” introduces a novel approach to app subscriptions, with the potential to benefit both developers and users. However, concerns regarding Apple’s control and potential anti-competitive practices remain. As the feature unfolds, it will be crucial to monitor its impact on the App Store’s competitive landscape and ensure that it fosters a thriving ecosystem for both developers and users.

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About the author

Jamie

Jamie Davidson

Jamie Davidson is the Marketing Communications Manager for Vast Conference, a meeting solution providing HD-audio, video conferencing with screen sharing, and a mobile app to easily and reliably get work done."