Apple Is Expanding Its App Bundles To Push Subscriptions

Source: Business Insider, Peter Sarnoff
Photo: Apple

Apple expanded its app bundle offerings to include subscription apps and Mac apps on Tuesday. App bundles, previously limited to paid apps, allow developers to offer iOS users several apps in one streamlined download at a reduced price. The inclusion of free apps that include a subscription service means developers can now offer up to 10 of these apps together under one all-encompassing subscription fee.

The expansion of app bundles to subscription apps bodes well for iOS developers:

The move will likely boost app visibility and drive app subscriptions as a result. If a developer bundles a lesser-known subscription app with a more popular one, for example, it will increase the likelihood a user discovers and downloads that lesser-known app.

Subscription apps are also a more reliable revenue generator than paid apps. Subscription apps generate revenue from recurring weekly or monthly payments from established consumers, rather than unpredictable, one-off purchases. Developers can use that recurring revenue to make their own offerings better, such as through more frequent updates, which could drive greater user engagement.

The move is the latest in Apple’s strategy to encourage more app subscriptions, which will help boost App Store revenue in the long run. The company first provided an incentive for developers to shift to subscription models in September 2016, when Apple increased the revenue cut for subscription app developers from 70% to 85% once a subscription’s been active for over a year.

Later, in April 2017, Apple held a special meeting with various app developers to promote adding subscription pricing to their apps. Since Apple takes a portion of subscription app revenue, the developer push into subscription apps will benefit the App Store going forward. That’s important for bolstering growth in Apple’s Services segment, which includes the App Store and is becoming key as iPhone sales falter.

https://www.businessinsider.com/apple-expanding-app-bundles-subscriptions