Apple has unveiled a new feature for its App Store subscriptions, termed “contingent pricing,” aimed at enhancing the way developers attract and retain subscribers, according to a recent 9To5Mac report. This innovative pricing strategy allows developers to offer discounted subscription rates to users who are already subscribed to another service.
Outlined in a recent post on the Apple Developer website, this feature is designed to provide more flexibility and incentives for both developers and customers. Contingent pricing enables developers to set a lower subscription price for users as long as they maintain an active subscription to a different service, either from the same developer or from another.
For instance, a developer could offer a reduced subscription rate for their app to users who are already subscribers of a different app. Apple’s example illustrates this concept: subscribers of ‘Ocean Journal’ could be offered a discounted rate for ‘Mountain Climber’, paying $4.99 per month instead of the regular $5.99, as long as they remain subscribed to ‘Ocean Journal’.
This approach not only benefits users with more affordable subscription options but also provides developers with a unique tool to cross-promote apps and build a more robust subscriber base. It opens up possibilities for collaborations between different developers, creating a more interconnected and dynamic app ecosystem.
Customers can discover these special pricing offers within the apps themselves, through off-platform marketing channels, and via planned placements on the App Store. Apple has committed to assisting developers in managing the implementation of this feature, ensuring a smooth and seamless redemption and purchasing experience based on the contingent pricing model provided.
Currently in its pilot phase, Apple has announced that more details about this feature will be available in January. Developers interested in leveraging this new pricing strategy can sign up to receive notifications from Apple with further information.
This move by Apple reflects its ongoing efforts to provide more flexibility and creative marketing tools for developers on its platform, potentially leading to increased customer satisfaction and higher subscription retention rates.
