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Russian developers have not yet increased the cost of subscriptions despite the sharp rise in prices in the App Store

Despite the fact that due to currency fluctuations, Apple has raised the price of apps by 20-25%, Russian developers freeze and even reduce prices for their products. Otherwise, they fear, the subscribers will simply cease to use their mobile services.

The Service “Yandex.Music” frozen the subscription price for iOS-the app for all of its users from Russia, from Ukraine and from Kazakhstan, told in “Yandex”. Full access to “Yandex.Music” mobile phones for iOS will cost even a little cheaper, than before,— 149 rubles a month. Such a decision the company took in spite of higher prices for mobile apps reported last week by Apple. The prices for mobile apps on iOS has increased due to fluctuations in exchange rates (in December the rate of the ruble against the dollar fell by almost 20%). In the case of Russia, applications are becoming more expensive on average by 20-25% from 59 to 79 rubles., from 119 to 149 rubles.

Other market participants also are not going to raise prices on their products. “Our position remains the same as last year during course changes: we do not change in-app purchases, as we are sure that this will have a negative impact on any game and the players”— quoted by Comnews head of mobile lines Group Alexander ENIN.

Similar action had been taken and holding Dream Industries (DI; musical project Zvooq, online library Bookmate, educational service “Theory and practice”). In “Yandex” recognize that the freezing of prices is limited time only. “Sooner or later we will be forced to increase the subscription price. But will keep the current prices as long as possible,” says the company. Application developers choose the lesser of two evils: to increase the subscription price and to face the churn of users, or decrease it to get less revenue, explains the situation to the CEO DI Mikhail Ilyichev.

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He recalled that according to the rules of pricing in the App Store and iTunes developers, unlike Google Play, can’t choose an arbitrary price, and enjoy special rates. The first price is set in dollars and then converted into local currency. For example, to buy a sword in the game or album in iTunes tieri will mean the $0.99, $1.99 or $2.99 and etc.

“It’s okay for one-time purchases, but inconvenient for subscriptions, because when you sign the user on a permanent revolving payments, he agrees to pay, say, 169 rubles.,— said Mr. Ilyichev.— Tier of $2.99 was $ 169 rubles a few days ago, and when he rises to 229 rubles, as now, after reassessment, is automatically deduct the money next month with a user is impossible”. According to the head of DI, all services run the risk of the subscriber base, as conventionally half of customers may not want to perepodpisanie at a higher price.

To deal with this evil, in services there is only one possibility — to transfer the subscription to another, cheaper tier, say market participants. According to them, doing almost all of the subscription services who are active in Russia. On the other hand, it affects the incomes of Apple, which charges a Commission at the rate of 30% per user payment. “At the same time, subscription to Apple Music still costs 169 rubles. per month, since Apple can afford manual pricing. Such tier for the rest in the App Store is no more — or 149 rubles., or 229 rubles””,— complains Mikhail Ilyichev, noting that the Russian music services is ready to proceed to subscribe for 229 rubles., but only after Apple Music.

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