This week saw Apple set up a subscriptions service on its app store. Patrick Mork, Chief Marketing Officer at GetJar, takes a look at the effect the move will have on publishers.
Subscription is a good thing because it allows publishers to monetize in a way that maximizes user value, whilst also giving them flexibility to charge consumers based on their preferences i.e. one time payment vs. cheaper periodic payments.
Subscription is also good for publishers since it allows them generate recurring billing which is more profitable for their bottom line, just at the time when they are seeing that one-off payments don’t generate enough revenues across the board for all publishers.
However, the notion that publishers must offer a subscription value that is at least equal to other channels in value leaves a little to be desired.
This removes pricing flexibility for brands / publishers and weakens their ability to manage their margins by channel.
Although we understand Apple is doing this to maximize value for Apple users – which is their goal – it’s like telling Pepsi that Walmart always has to have the best deal, regardless of what other channels sell their Soda. It’s discriminatory and negatively affects a publishers ability to run their business.
By Patrick Mork
Chief Marketing Officer