Subscription Pricing: The new bane of the App Store?

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In App purchases have changed the App Store pricing in a big way. Effectively reducing apps to mobile slot machines that customers pour money into on a daily basis.

Addictive games like Candy Crush Saga started the trend of monetising components of the game to help advance progress. Following suit came Clash of Clans, FIFA 16 Ultimate Team™ and even SimCity. This trend was a boon for mostly gaming developers and saw some games become multi million dollar cash cows.

Prior to WWDC in June Phil Schiller 1 the Apple would be bringing subscription pricing to the App Store for select product categories. Developers largely supported this however there is an undercurrent of concern in the community what this may lead to.

In recent times two big name mobile developers announced changes to their business models. Firstly Smile Software 2 that its much loved TextExpander software would be updated and moving to a subscription model. This decision was met with howls of discontent about its pricing structure and value that it offered with many looking to jump ship and move away from the product entirely. Then in the last few days Evernote which has had subscription pricing for some time 3 an increase its costs and limitations to the free version. This too was not entirely a popular decision.

Subscription pricing whilst offering a cash stream for developers brings concerns for customers; namely value for money. Will a customer see a constant stream of updates and benefits for the dollars they pay? How many apps will go this way and what will people end up paying per year for the privilege?

Let’s look at one company who is doing this and doing it well. As an Apple geek it pains me to say that Microsoft offer a great package for a good price. Office 365 is not a stand alone app but a series of excellent productivity apps that will help any user remain productive at their Mac, iPad or their work PC. The pricing is quite high but what you get is excellent value with the mobile products alone worth every dollar. Microsoft are also keeping the apps up to date and Apple even rolled them out with the launch of the iPad Pro to demonstrate the mark up features with the Apple pen. This is subscription pricing at its best and shows the possibilities to come.

In my opinion Evernote is not an example of a good subscription. Poor quality bloated apps that have failed to innovate and improve on what was once a great idea. Evernote is considered a big developer and it is concerning when they cannot manage to provide a decent offering to subscribers.

Smaller less known developers could potentially struggle to meet expectations and I wonder who is going to monitor this? Would refunds be available? What are Apples expectations of developers offering subscriptions? Lots of questions and few answers yet but time will tell whether this will improve things in the App Store system for developers. The hope is developers and consumers both benefit from this and quality apps become the well supported norm.

  1. Daring Fireball 8th June 2016 ↩︎
  2. Smile Software Annoucement ↩︎
  3. Evernote Annoucement ↩︎