Android Apps Will Offer Cheaper, Introductory Subscription Prices
Google announced at its Playtime event for Android developers yesterday that apps on the Play Store will gain a new option: temporary promotional pricing, which could have major implications for subscriptions. Google’s Larissa Fontaine wrote in a blog post, “Coming soon, you’ll be able to create an introductory price for new subscribers for a set period of time. For example, you can offer a subscription for $1 per month for the first three months before the normal subscription price kicks in.”
Many app categories could benefit from this, for instance music and video. Perhaps cheaper introductory pricing could boost Google’s YouTube Red service, or facilitate Spotify’s lead over Apple Music. Productivity apps also stand to benefit from temporarily cutting their prices, in the hopes that customers will stay subscribed after the normal rate begins because they find the app to be worth the monthly cost. “Subscriptions are the fastest growing business model on Play, with consumer apps spending in subscription apps increasing 10x over the last 3 years” wrote Fontaine.