Hybrid pricing can help app developers better monetize their apps
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It seems like everyone has been talking about Lensa AI this week, but a less obvious point of this AI-enabled chart topper caught my attention: its hybrid pricing. Could this be a sign of a new path for developers? Let’s explore. — Anna
App pricing is a long-standing issue between Apple and developers. “Staunch Apple critics, like Spotify for example, have argued for years that the lack of pricing flexibility hinders their business,” TechCrunch’s Sarah Perez reported.
Apple seems to have taken complaints into account: This week, the Cupertino firm announced that its App Store pricing system will progressively enable more price points and will allow developers to “set prices for apps, in-app purchases or subscriptions as low as $0. 29 or as high as $10,000, and in rounded endings (like $1. 00) instead of just $0. 99.”
The demand for more pricing flexibility is a consequence of another trend: A shift from paid app downloads to subscription-based models that may require more granularity to optimize revenue. Some developers have not waited for Apple to create hybrid pricing models, which combine subscription economics with other types of monetization. This could be the norm.
I’m a journalist who specializes in investigative reporting and writing. I have written for the New York Times and other publications.