News broke last night of some changes to the App Store. Chief among them was the availability of subscription pricing to all types of apps. Many people seem to see it as a positive for developers, and I agree to some extent, but it all depends how those subscriptions will be used.
This quote from The Verge’s coverage of the news is exactly what I’m concerned about.
Tsiddon says his company makes around $10 million a year from its premium apps, which are sold for a one-time purchase fee of $3.99 or $4.99. Lightricks has sold 8 million app downloads to date. Tsiddon hasn’t fully committed to a subscription model yet, only saying that he’s “excited to experiment with the business model,” but based on back-of-the-envelope math he believes if his company saw 4 million downloads while charging a $4 monthly subscription fee, he could make 10 times his current annual revenue.
If developers start to shift to pricing like this, I and many others, will stop using their apps. I simply can not afford, and even if I could I would not be able to justify, paying $4 a month to use an app. Especially when it’s multiplied by the 12 independent apps on my iPhone homescreen. That’s not sustainable.