In a significant move, Apple has started experimenting with a feature on the App Store that allows developers to offer ‘contingent pricing’ for subscriptions. This innovative approach enables developers to bundle subscriptions for two apps at a discounted price.

What is Contingent Pricing?

Contingent pricing is a feature that allows developers to charge a discounted price even if the app’s subscription goes up, as long as consumers have subscribed to the other app in the bundle. This means that developers can offer discounts on subscriptions for multiple apps, promoting their work and increasing user engagement.

Pilot Program and Future Rollout

According to an update on the developer blog, Apple is currently piloting this feature and will be onboarding more developers in the coming months. The company encourages interested developers to start planning today and sign up to get notified when more details are available in January.

Indie Developers’ Paradise

This new feature is particularly beneficial for indie developers, who can now promote their work by offering discounts on subscriptions for bundles of their apps. By doing so, they can increase user engagement and attract new subscribers.

How Does it Work?

According to Pete Hare, a senior engineering manager at Apple, the company handles all complexity, including eligibility checks and payments processing, allowing developers to focus on creating great content. In an interview on LinkedIn, Hare explained that "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."

Marketing and Promotion

While the feature is still in its testing phase, Apple allows developers to promote this discount on off-platform marketing channels. According to 9to5Mac, this move indicates that Apple’s main goal is to make the App Store more attractive to developers before the EU’s Digital Markets Act (DMA) comes into effect next year.

What Does This Mean for Developers?

The introduction of contingent pricing on the App Store has several implications for developers. Firstly, it provides a new way to promote their work and increase user engagement by offering discounts on subscriptions for bundles of apps. Secondly, it allows developers to take advantage of Apple’s streamlined payment processing system, making it easier to manage complex transactions.

**What Does This Mean for Alternative App Stores?