Apple's $1.1 Trillion App Store Developers Get A New Trick For Subscriptions: Here's What It Means For Users

Apple Inc. AAPL has launched a new feature for developers called "Contingent pricing", giving them a new way to attract and retain subscribers.

What Happened: Apple is testing a new feature to help its App Store developers, giving them another avenue to boost their revenue.

The iPhone maker says its "Contingent pricing" feature will allow developers to offer discounts to new or existing subscribers. However, there is a catch: users will need to subscribe or be subscribed to at least one other service offered by the developer.

But that's not all – this feature is more interesting than just discounted subscriptions.

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Developers can choose to offer a discount on their services if a user is subscribed to another service offered by them or by another developer.

This essentially means that two or more developers can collaborate and offer discounted subscriptions to their common users.

So, if you have a subscription to one app, then the other developer could attract you to their apps and services with a discount. Here's an explanation from Apple:

"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."

Why This Matters: Apps and services that complement each other can make the most use of it – two independent developers can deliver a better package than just one, and that is what Apple is banking on.

App Store is a trillion-dollar business – Apple announced developers generated $1.1 trillion in sales in 2022. To top it off, 90% of this revenue went to developers, not Apple, making the App Store one of the most attractive avenues for apps and services.

As far as subscribers are concerned, this "Contingent pricing" feature will allow them to get a bouquet of subscriptions at better prices.

This could be a win-win for users, app developers, and Apple if implemented well.

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