Apple has initiated a trial of a new App Store feature enabling developers to implement “contingent pricing” for subscriptions. This functionality permits developers to bundle subscriptions for two applications at a reduced rate. Through a blog update, the company explained that developers can apply a discounted rate, even if an app’s subscription increases, as long as consumers have subscribed to the other app within the bundle.
The company stated in its developer blog update, “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.”
This feature proves particularly advantageous for independent developers, allowing them to promote their creations by offering subscription discounts on bundled apps. Pete Hare, a senior engineering manager at Apple, shared on LinkedIn that the company manages all complexities, including eligibility checks and payment processes.
“We handle all the eligibility checks and commerce work to allow for seamless in-app purchases in your own apps, and also Apple-provided flows to subscribe and download in one step directly from email links or the App Store – to allow you to discount your services based on other apps in the App Store,” explained Hare.
While currently in the testing phase, Apple has communicated that developers can advertise these discounts on external marketing channels. This move appears to be part of Apple’s strategy to enhance the appeal of the App Store to developers ahead of the implementation of the EU’s Digital Markets Act (DMA) in the upcoming year. The DMA mandates app distribution platforms, such as Apple’s App Store and Google’s Play Store, to permit users to install apps through alternative methods.
Apple’s promotional messaging for this feature suggests that the App Store can adeptly handle intricate payment and subscription processing, even in scenarios involving multiple apps and developers. Such capabilities may pose challenges for emerging alternative app stores.
