Longtime subscribers helped many mature apps grow by signing up for low prices and dependable features, but stagnant revenue, inflation, and the cost of developing new features can push companies toward substantial price increases. Developers can ease the impact by rewarding loyal customers, offering more subscription choices, and communicating changes well in advance—although users may ultimately need to reconsider whether a once-favorite app still offers the best value.
Reward loyal users
Mature apps with long-term subscribers often face a difficult balancing act. These loyal customers are valuable to the business, but many are satisfied with software that works much as it always has and may not expect to pay more for it.
Stagnant growth, however, does not align easily with inflation or shareholder expectations. Companies may also struggle to generate enough revenue to develop new features and keep their software up to date. Plex said its Lifetime Pass launch price was not sustainable over the long term, with the price increasing by 525 percent across two price hikes since March 2024. Streaming apps have followed a similar pattern.
New features can help soften the effect of significant price increases. For older customers, though, paying double or more can still be difficult to accept—especially when they were already satisfied with the app’s existing functionality.
Developers have ways to cover rising costs and fund new features without relying solely on price increases. They could allow longtime customers to keep discontinued pricing, provide exclusive features, or offer other benefits to offset higher costs. Giving customers advance notice when a price increase is unavoidable can also help demonstrate that loyal users are valued.
More subscription choices
Another approach is to offer a broader range of subscription tiers. Developers often point to new features when justifying higher prices, but not every user wants or needs those additions. Offering more options—including a less expensive AI free tier—could let developers expand their apps’ functionality and audience without penalizing users who are content with the original features. Advanced functionality could also be offered to power users as separate add-ons or as part of a bundle.
Price increases may be unavoidable because of internal and external pressures. When that happens, users may want to reconsider whether their favorite app remains the best option after all these years.
Source: arstechnica.com
