Apple’s Subscription Charges & What This Means For You?

Apple has recently announced they are making some changes to their App Store Subscription policy, in particular to the auto-renewable subscriptions. Here is a quick rundown of what has changed;

• Previously Apple took 30% of subscription payments after the first year, this has now been significantly reduced to only 15%.

• Auto-renewable subscription policies were once only available to media and content apps, however now almost all apps will be able to use them.

• Publishers may now offer upgrades to their users.

• Territory-based pricing is available for all app publishers. Similarly, publishers can target specific geographic markets when implementing price changes.

• With changes to the auto-renewable subscription price plan, publishers can now preserve prices for existing customers whilst giving higher prices for new ones.

• The consent process for price changes is much simpler. The customer gets both a push notification and email from Apple, which brings them to an iTunes page where they can see the new price information and with the click of a button can consent to the new price.

Now with app subscriptions open to all categories it marks a fundamental shift in the structure of the app store. These changes bring forth a new way for us & our clients to work out potential revenue streams to generate income. This subscription model does not make sense for all apps, it is best suited for apps where the user is constantly coming back for more. For the user paying a small monthly fee is a small price to pay to have access to an immersive & entertaining mobile application experience. As a company we will work with customers who are looking to adopt a subscription-based app, as it is no longer enough to purchase an app once, users must pay the subscription to continue using the app. New adopters who are looking to implement a subscription based model would have been put off before where the customers would be taken to a third party where they had to fill in forms with information instead now the information will be completed with just one click using the existing customers Apple ID.

It is important for application developers to focus on the consumers and that the application has pulling power which keeps the application fresh and relevant. We have covered in our previous blog about push notifications and how they keep users informed about the app. With a subscription based model, the user can have access to a personalised & relevant application experience. This can also extend to running advertising campaigns which would feature adverts tailored specifically for the user. With these subscription models, it is vital that you can measure customer satisfaction, with push notifications this is simple as you can delve into the analytics and see who and who isn’t interacting with the push notifications. Keeping users happy is the best way to ensure a renewal on their subscription.

As the new model is rolled out it will take a while for the incentives to become apparent to the end user however this is an undeniably massive opportunity for developers and consumers to connect with each other within a rich mobile eco-system.

If you are interested in seeing how VOiD can help you bring your mobile application to life and help you create a tangible, efficient recurring subscription based model then please contact us here.