Introductory app subscription pricing coming to App Store

Posted:
in iPhone
Apple on Monday announced a new App Store feature that allows developers to offer discounted introductory pricing or limited-time free trials on auto-renewable app subscriptions, a move designed to help subscription-based apps draw in new customers.




Announced in a post to Apple's Developer News webpage, the feature lets developers boost engagement by offering one of three new introductory price types -- pay as you go, pay up front and free trial -- to customers.

With pay as you go pricing, new subscribers are offered an introductory price each billing period for a set duration before being transferred over to a full-price subscription. For example, customers might pay $1.99 per month for 3 months, then shift to a standard price of $9.99 per month.

Available durations are broken down by the length of a given subscription:
  • 1 Week subscription, 1 to 12 Weeks
  • 1 Month subscription, 1 to 12 Months
  • 2 Month subscription, 2, 4, 6, 8, 10 and 12 Months
  • 3 Month subscription, 3, 6, 9 and 12 Months
  • 6 Month subscription, 6 and 12 Months
  • 1 Year subscription, 1 Year
Pay up front presents an extended introductory rate experience by providing new subscribers the option of paying a one-time discounted price for a preset duration, for example $9.99 for 6 months for a subscription that normally sells for $39.99 per year.

Durations for pay up front pricing are set at 1, 2, 3 and 6 months or 1 year.

Finally, the free trial option offers new subscribers access to a given subscription service for a set period of time. Customers can later transfer to a paid subscription if they find the content or app valuable. Apple itself uses an identical plan to push its Apple Music streaming music service.

Developers can offer free trials of 3 days, 1 week, 2 weeks, 1 month, 2 months, 3 months, 6 months or 1 year.

Apple notes customers are limited to one price type per subscription, per territory.

Developers can activate and manage introductory price settings in iTunes Connect, but they must first implement new iOS 11.2 StoreKit APIs in their respective apps. In addition to adding support for introductory pricing, the APIs also localize and display discounted pricing details to users.

As part of the plan, developers keep 70 percent of the subscription price, minus applicable taxes, when a subscriber has less than one year of continuous paid service for a given auto-renewable subscription. That figure jumps to 85 percent once a customer completes one year of paid service.

The change in subscription pricing arrives alongside Apple's opening of app pre-orders to all developers, a feature that allows app makers to advertise their wares on the App Store prior to release. Apple first experimented with App Store pre-orders when Nintendo launched Super Mario Run last year.

Comments

  • Reply 1 of 8
    I HATE subscriptions. Your pocket gets picked automatically each month. 
    mac_dogcommand_fdysamoria
  • Reply 2 of 8
    How's about upgrading price, like in a PC or Mac? THAT is what the customer would want, and what the developer need. Apart from video app like Netflix or MUTV, I never and will never buy app that has subscription model. It's unnecessary.
    edited December 2017 mac_dogdysamoria
  • Reply 3 of 8
    Rayz2016Rayz2016 Posts: 4,765member
    matrix077 said:
    How's about upgrading price, like in a PC or Mac? THAT is what the customer would want, and what the developer need. Apart from video app like Netflix or MUTV, I never and will never buy app that has subscription model. It's unnecessary.
    I don’t have a problem with the subscription model; you can take it or leave it. I have two subscriptions  for developer tools that I’m very happy with (they worked out cheaper for me since I upgraded every year anyway). 

    What I don’t understand is this aversion to upgrade pricing. It seems self-defeating to me. 

    https://www.fastcompany.com/3017187/is-it-time-for-apple-to-update-app-store-pricing-rules


    edited December 2017 jony0
  • Reply 4 of 8
    I am surprised that Apple is supporting "introductory pricing" ... its the scum of any business model and is insulting intelligence ...
    dysamoria
  • Reply 5 of 8
    Rayz2016 said:
    What I don’t understand is this aversion to upgrade pricing. It seems self-defeating to me. 

    https://www.fastcompany.com/3017187/is-it-time-for-apple-to-update-app-store-pricing-rules


    Indeed. 9 years of App Store, it should be here 5 years ago.
    jony0dysamoria
  • Reply 6 of 8
    I can’t believe Ap is actually condoning this highway robbery!  Not are they condoning it they are  encouraging it!  
    This bennitfits no one but Apple and the developer. I understand the developers needs to keep their books in the plus but that’s what upgrades are for. And now Apple has its fingers in the till only exacerbate this situation. 
    Ourages, just outrages!
    Charlie T
    command_fdysamoria
  • Reply 7 of 8
    I'm deeply opposed to software subscriptions too.

    If I buy an app but then gradually stop needing/wanting it, I can still access my files and do any minor work at no further cost using my gradually degrading but usually still useful app. If I still use it as much as I anticipated, I will buy any upgrade so the developer gets their fair reward too; if not, I can give the money to some other developer to meet my new needs (or simply to access their superior app).

    With a subscription model, using Adobe as an example, I have to keep paying the same amount every month just to open my files. For any app that isn't part of my professional work every month, that's just nonsense. A year's subscription leaves me with nothing in month 13 so no way to wean myself off the app - that can't be reasonable.
    dysamoria
  • Reply 8 of 8
    dysamoriadysamoria Posts: 2,283member
    So... my post was deleted? No notice?

    Edit: my mistake. Different article with a similar topic.
    edited December 2017
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