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Purchasely Takeaways #5: Epic Games vs Apple, Consumer Subscription 2021 report, podcast about Monetization

Purchasely Team
Purchasely Team
Hello everyone,
Here is the October edition of our monthly Newsletter.
We are very happy to be featured on Product Hunt and Purchasely reached the Top 10 of the Day on Sept. 23. 👉 Upvote here!
Are you ready to get more subscribers in Q4?
The Purchasely team.

Epic Games vs Apple: a wrap up
On September 10, the District Court of Northern Califonia released its judgement in the lawsuit brought by Epic Games against Apple in August 2020.
The conclusion of the 185-page document states:
The Court does not find that Apple is an antitrust monopolist in the submarket for mobile gaming transactions. However, it does find that Apple’s conduct in enforcing anti-steering restrictions is anticompetitive.”
Therefore, the Californian judge issued an injunction that says that Apple is
“hereby permanently restrained and enjoined from prohibiting developers from (i) including in their apps and their metadata buttons, external links, or other calls to action that direct customers to purchasing mechanisms, in addition to in-app purchasing and (ii) communicating with customers through points of contact obtained voluntarily from customers through account registration within the app.”
Apple has 90 days starting from September 10, 2021, until this injunction becomes live and actionable. Following the ruling, Epic Games immediately filed an appeal in its case against Apple.
It is impossible to summarize in a few lines the giant in-depth analysis of the judgement. You may read the Forbes article written by John Koetsier, a well-known tech journalist covering the mobile industry for many years: The 36 Most Interesting Findings In The Groundbreaking Epic Vs Apple Ruling.
What are the consequences for app publishers and In-App payments?
Due to the sentence “in addition to in-app purchasing” and to the in-depth analysis of the relevant markets, all analysts are sharing this statement: Apple is today allowed to keep IAP mandatory.
But the Court wants Apple to give app publishers the flexibility to allow pricing transparency. What is unknown right now is the level of flexibility that the Judge has in mind.
  1. Due to Epic’s appeal, nothing will change in Q4 2021.
  2. 2022 will open the field of possibilities.
  3. Nobody knows the concrete feasibilities of in-app coexistence of alternative payments and In-App Purchases that could be the results of the legal battle.
  4. The Korean bill passed in August (see our previous newsletter) might be the trigger as The Korea Communications Commission will soon be drawing up an enforcement ordinance. An anonymous regulatory official says that it could be mid-October.
The Purchasely team is already working on adapting its product in order to enable Mobile subscriptions business in any set-up and possible Epic vs. Apple outcome. More to come on this very soon!
Consumer Subscription Software: 2021 report
GP Bullhound releases its 2021 report on the Consumer Subscription Software (“CSS”) ecosystem.
GP Bullhound is a leading technology advisory and investment firm. Since 2019, it has published an annual research report on the Consumer Subscription Software (“CSS”) ecosystem.
The 2021 report is available here ➡️ Spinning the CSS flywheel to delight consumers.
Among the 49 pages of an impressive deep dive, the Purchasely team is highlighting this chart 👇. It shows that US consumers are willing to accept a higher price in exchange for high usage frequency. It means that if an app has the capacity to drive more engagement, it may extract more value from end users.
Pricing versus engagement - GP Bullhound analysis
Pricing versus engagement - GP Bullhound analysis
GP Bullhound also emphasizes the importance of organic customer acquisition channels. Customer Acquisition optimization is crucial to ensuring a sustainable, profitable subscription business.
New Consumer Subscription Software companies are facing customer acquisition ecosystems with rising costs such as Google and Facebook. But they may leverage new low-cost or free channels to find and attract customers. 
Please see below a list of channels identified by GP Bullhound research team.
Modern customer acquisition channels - GP Bullhound analysis
Modern customer acquisition channels - GP Bullhound analysis
Subscription Megatrend: new examples
Many industries are embracing the Subscription Megatrend. Please see some new examples that we have identified in the past weeks 👇:
  • Mobility: Transit, a Montreal-based app that helps people plan, book and pay for rides on public transit, is introducing a subscription model. (“Royale”). In a blog post, the founders explain:
Here’s what we refuse to do: blast you with distracting ads, mine your personal data, sell it to the highest bidder. Making you our product, rather than our customer. We think that’s wrong.
 We spent long nights trying to find a delicate balance of what were “essential” features, and what were “bonus” ones worth paying for. What price would be sustainable for us, yet reasonable for our users.
The paywall of Transit Royale
The paywall of Transit Royale
  • Pets: Barkyn, a Portugal-based subscription service for pets that combines food with tele-vet services, extends Series A to €8M.
Apple releases custom codes and unlocks influencers’ referral capacity
November deadlines for Android apps
We would like to remind you about 2 important deadlines defined by Google Play.
  • By November 1, 2021, all updates to existing Android apps must use Billing Library version 3 or newer.
  • Starting in November 2021, app updates will be required to target API level 30 or above and adjust for behavioral changes in Android 11.
Purchasely platform and SDK are already compliant with Google Billing version 3 & 4 and API level 30 .
Monetization of premium services across multiple countries
Please meet Yoann Deshaies, our Product Manager.
Yoann has been the Product Manager of Purchasely since April. Previously, he was the Product Manager Monetization at happn, a leading mobile dating app.
At happn, he took responsibility on two crucial topics for a successful app: activation and conversion. He faced the challenges of that highly competitive dating market to bring happn to the Top 3 french leading apps in terms of revenues.
He is now bringing In-App Monetisation, A/B testing and Pricing Optimization expertise to Purchasely platform and customers.
🎧 In this 15-minute podcast episode 🎧, Yoann shares best practices about Monetization and underlines the importance of local Culture and Purchasing Power to efficiently monetize a global app.
Yoann Deshaies, Product Manager at Purchasely
Yoann Deshaies, Product Manager at Purchasely
One more thing
📚 Some fresh content is available on our blog, make sure to check it out:
➡️ Please follow our LinkedIn page and Twitter account!
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Purchasely Team
Purchasely Team @purchaselycom

In-App Subscription reinvented

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