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It seems like everyone’s been talking about Lensa AI this week, but a less obvious point about this AI-enabled chart topper caught my eye: its hybrid pricing. Could it be an example of a new path that more developers will follow? Let’s investigate. — Anna
App pricing has long been a bone of contention between Apple and developers. “Ardent Apple critics, like Spotify, for example, have argued for years that the lack of pricing flexibility is holding back their business,” australiabusinessblog.com’s Sarah Perez reported.
Apple seems to have taken the complaints into account: this week the firm Cupertino announced that the App Store pricing system will gradually allow for more price points and allow developers to “set prices for apps, in-app purchases, or subscriptions starting at $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 result of another trend: a shift from paid app downloads to subscription-based models that may require more granularity to optimize revenue. But some developers haven’t waited for Apple’s decision to come up with hybrid pricing models — which combine subscription economics and other forms of revenue — that could soon become the norm.