Apple encourages developers to adopt subscription fee structure in new video

Apple on Monday continued to push app makers toward in-app subscriptions by sharing a new "Developer Insights" video on its developer portal espousing the benefits of reoccurring payments.

In the roughly three and a half minute video, developers from popular apps Dropbox, Bumble, Elevate and Calm discuss how subscriptions have helped them "create great customer experiences." This includes predicting their app's revenue, tips for encouraging subscriptions, and how they are encouraged to improve the app.

"The value for the user is that you're not just buying one thing at one time," says Elevate's Director of Growth Jesse Germinario. "You're actually buying something that is evolving, something that is growing."

Apple has increasingly encouraged developers to embrace in-app subscriptions rather than offer a one-time initial payment, traditionally the preferred payment method since the App Store launched in 2008.

The company has gone so far as to hold secret meetings with some developers. During one such gathering last year, Apple warned developers that the App Store pricing model was changing, with one-time payments making up less of the market as subscription apps take over.

Recurring payments makes it easier to acquire customers with a free trial, and gives developers incentive to continuously update the app with fresh content and improved experiences. Importantly, subscriptions present constant revenue for developers, who often have to maintain servers and other backend processes to keep their wares running smoothly.

While some turn their nose up to subscription policies, recurring payments is clearly working for a large number of developers.

When the App Store originally launched, many apps were priced at $4.99 or $9.99 as developers tested the waters to see what customers were willing to pay. Over time, that price dropped and now consumers are most content to buy apps priced at $.99 or $1.99.

Head over to Apple's developer portal to watch the video for yourself.

51 Comments

cornchip 1943 comments · 11 Years

About 6 years ago

I know it’s the way of the future, doesn’t make it any less lame.

mac_dog 1083 comments · 16 Years

Yeah...they used to call those updates. No thanks on the subscription services.

Soli 9981 comments · 9 Years

cornchip said:

I know it’s the way of the future, doesn’t make it any less lame.

I mostly agree. It doesn't shock me to have to pay a monthly fee for certain services and yet others it seems odd. I can't rule out that it's possibly more of a bias than it not making sense for the developer. Even with 1Password I scoffed at the notion and yet it ultimately means I pay less than I previously was to update all my 1P apps periodically.

PS: You don't have to use 1Password's online storage. All the old methods for syncing your data are still available.

lkrupp 10521 comments · 19 Years

mac_dog said:

Yeah...they used to call those updates. No thanks on the subscription services.

Some of the most useful and productive apps have switched to subscription models. 1Password 7 is one of them. ClamXAV started out as donation ware, then became a paid app, and now version 3 is subscription. Fine and dandy but there is a limit to how many subscriptions the market will bear. I currently subscribe to Office 355, Quicken, Amazon Prime, Netflix, and Apple Music. Something's got to give. Where I may have paid up front for a single license app because I found it useful I now have to consider the budget for subscriptions before I decide. Do I really need it and is it worth paying a monthly or annual subscription? The money adds up rapidly at $10/mo. I have a feeling the subscription model is going come back and bite a lot of developers in the ass. I have already decided not to update to 1Password 7 because version 6 still works as advertised.

matrix077 868 comments · 9 Years

I avoid Calm even though I really like the app because of subscription. I understand it’s another option for income to app developer but “encouraged” by Apple? Could end up be harmful to the ecosystem.