Apple announced a contingent pricing for subscriptions on its Developer blog, on December 15, 2023.
“Contingent pricing for subscriptions on the App Store – a new feature that helps you attract and retain subscribers – lets you give customers a discounted subscription price as long as they’re actively subscribed to a different subscription. It can be used for subscriptions from one developer or two different developers We’re currently piloting this 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.”
9To5Mac reported that one of the most interesting aspects of this new contingent pricing feature is that it can be used for subscriptions from one developer or two different developers. For example, Apple explains that one developer could entice new users to join by offering a discounted rate if they’re actively subscribed to a subscription from a different developer.
9To5Mac also provided more details about Apple’s contingent pricing:
“Contingent pricing can be used for subscriptions from one developer or two different developers. For example, you might offer Ocean Journal premium subscribers the opportunity to subscribe to Mountain Climber for a discounted price of $4.99/month instead of the regular $5.99/month. Customers pay the discounted price as long as they remain Ocean Journal subscribers.
Customers can discover these pricing discounts within your app, in off-platform marketing channels, and in planned placements on the App Store. Apple helps you manage implementation, providing customers with a seamless redemption and purchasing experience based on the contingent price proposition you provide.”
Engadget reported that Apple’s contingent pricing comes at a time of ongoing scrutiny into Apple’s practices with its App Store and how it handles in-app purchases, which came to a head in Apple’s battle with Fortnite owner Epic Games.
According to Engadget, just this fall, Apple asked the Supreme Court to reverse its previous ruling that required it to allow developers to circumvent its 30 percent transaction fee by supporting outside payment systems. But it’s still looking for ways to get back in developers’ good graces. The company says it will release more information on the program next month.
Mashable reported that Apple didn’t give specific examples in the post, but it appears to be centered on partnership. For instance, if a smaller photo editing app wanted to build its subscribers base, it could partner with a larger video editing app and allow any of the subscribers to the larger app access to a lower fee for the smaller app.
According to Mashable, “It can be used for subscriptions from one developer or two different developers,” Apple wrote, meaning companies could do this with their own apps – if a company owns a workout app and a meditation app, you could get a deal on one app if you’ve already signed up for the other – and also for competitor’s apps.
In my opinion, Apple’s contingent pricing might be good for consumers. It sounds as though people who already use specific apps could get a (somewhat lower) price on other apps that fit their needs. That said, we have to wait until January before we know for certain how this will work out.