In a groundbreaking move, Apple has introduced a fresh feature named "contingent pricing" for App Store subscriptions. This feature enables developers to extend discounted subscription rates to users who are actively subscribed to a different service.
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This illustration photo shows the Apple app store logo reflected from an iPhone onto the back of an iMac in Los Angeles, August 26, 2021.
Apples' 'Contingent Pricing'
Apple has initiated the testing phase for a novel App Store functionality termed "contingent pricing," aimed at assisting developers in enticing customers with more affordable subscriptions based on their existing purchases.
9to5Mac reported that this innovative pricing model enables developers to extend discounts to users who already subscribe to other services, whether they belong to the same developer's apps or are affiliated with partnering entities.
The initial rollout involves a carefully selected group of participants, with plans to expand to a broader developer audience "in the coming months."
Apple's Strategy
In a recent post on the Apple Developer website, Apple explained that this innovative addition is designed to assist developers in both attracting and retaining subscribers by allowing them to offer discounted subscription prices to customers actively engaged in another subscription.
One notable aspect of the contingent pricing feature is its versatility as it can be applied to subscriptions from a single developer or even two different developers.
For instance, Apple provides an illustration where a developer could entice new users by presenting a discounted rate to those who are actively subscribed to a service from a different developer. The application of contingent pricing extends to scenarios involving subscriptions from one or two developers.
To elucidate, developers could offer a reduced rate of $4.99/month for premium subscribers of Ocean Journal who also subscribe to Mountain Climber, as opposed to the regular $5.99/month. This discounted rate remains applicable as long as the customers maintain their subscription with Ocean Journal.
Discovering these pricing incentives is convenient for customers, as they can find them within the app, through off-platform marketing channels, and strategically planned placements on the App Store.
Apple aims to facilitate a seamless redemption and purchasing experience by guiding developers through the implementation process, ensuring customers benefit from the contingent pricing model seamlessly.
Also Read: EU Regulators Rule Against Apple in App Store Policy Dispute with Spotify
Engadget reported that this development unfolds against the backdrop of ongoing scrutiny directed at Apple's App Store practices, particularly its approach to handling in-app purchases.
The intensity of this scrutiny reached its zenith during the high-profile legal battle between Apple and Epic Games, the company behind Fortnite.
A key flashpoint in this ongoing discussion involves Apple's request to the Supreme Court to overturn a prior ruling that mandated the allowance of developers to bypass the App Store's 30 percent transaction fee through external payment systems.
Notwithstanding these challenges, Apple is actively seeking avenues to mend its relationship with developers. This move signifies Apple's ongoing efforts to address concerns, adapt to industry dynamics, and establish a more collaborative ecosystem within the App Store.
Related Article: EU Launches Investigations Into Apple's App Store, Google's Play Store
