Apple is piloting a new program that allows iOS developers to offer discounted subscription bundles, hoping to make subs more appealing and boost revenues.
Dubbed “contingent pricing for subscriptions,” the initiative lets developers bundle subscriptions from one or two different apps and offers customers a lower price if they subscribe to both. Discounts can be offered directly in the apps, in App Store marketing, or through external promotions via email and other channels.
According to Apple engineering manager Pete Hare, the tech giant will “handle all the eligibility checks and commerce work,” streamlining the process for developers. Once a user takes advantage of a discounted bundle promotion, they can subscribe to both apps directly from the email link or App Store in one seamless step.
The move gives developers more leverage to retain existing subscribers and attract new ones by making their apps’ subscriptions cheaper as part of bundled offerings. It also provides a framework for developers to partner with one another and cross-promote their subscriptions via joint bundles spanning multiple apps.
With Apple soon required to allow third-party app stores in the EU, the company is exploring new ways to demonstrate value to developers and give them competitive incentives to stick with the official App Store. Tools that help devs maximize subscription revenue and lower user acquisition costs, like contingent subscription pricing, could be key retention strategies for Apple.
The company says it will bring developers into the contingent pricing program over the next few months. So while it may take some time for consumers to experience subscription bundles and discounts in the wild, Apple is laying the groundwork for devs to take more control over subscription pricing models.
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