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Apple launches ‘contingent pricing’ test to keep App Store devs before DMA.

Apple wants to make the App Store more enticing to developers before the EU’s Digital Markets Act (DMA) deadline, which allows developers to distribute apps through their own channels for the first time. Apple is testing “contingent pricing,” a new approach to promoting App Store subscriptions, to retain developers, Eltrys reports.

Last month, Apple offered a cheaper membership for users who are actively engaged in another subscription from the same or two distinct developers. Developers that utilize it themselves might give loyal consumers a bargain on another app in their portfolio.

Alternately, two developers may utilize the opportunity to entice people to their subscriptions if their programs integrate or supplement each other.

The first contingent pricing pilot test matches structured and one-second applications. The former is a daily planner with a graphic calendar and to-do list, while the latter is productivity software that forces users to pause before loading addicting applications to break their social media habits. (An odd pilot decision given Apple and Meta’s continuing spat over App Tracking Transparency, which Meta claims hurt its company!)

Apple selected the partnership for the testing, but both firms have worked together for years. One-second’s capability in Structured lets users prevent distracting apps during incomplete work. The applications’ founders, Frederik Riedel (one sec) and Leo Mehlig (structured), both got scholarships to WWDC.

Customers who subscribe to one app can get a discount if they subscribe to the other via dependent pricing. The App Store’s “Events & Offers” section promotes this bargain, which advertises the reduced price before the subscription fee, which is marked out. The savings are noted (“You are saving as a Structured Daily Planner Subscriber.”).

The promotion is posted on both applications’ product sites, and Apple plans to push the reductions separately in the App Store. The developers also promote the deal on their social media and websites.

The experiment with these two applications began on Thursday, so it’s too early to tell if it will boost conversions. However, an app-integrated smart pairing like this may perform well. Apple claims it helps developers apply dependent pricing to make App Store redemption “seamless” for users.

The trial test follows Apple’s announcement this week of revised EU app developer guidelines, including decreased commissions, sideloading, security checks, and taxes. Apple needs new strategies to keep developers on its App Store due to EU competition. Offering a tool to assist developers in co-marketing their applications with other developers to enhance subscription conversions might motivate developers to stay on the App Store.

Eltrys Team
Author: Eltrys Team

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