Should apps include the app store fees in their subscription prices?
Blog post from RevenueCat
Twitter's introduction of the Twitter Blue subscription service, initially priced at $8 but increased to $11 for iOS users, has sparked debate over its pricing strategy, particularly in light of app store fees. The increase was implemented to offset the 30% revenue cut taken by Apple, which has led to criticism regarding the lack of price testing and understanding of price elasticity by Twitter's management. The article argues that companies should avoid passing app store fees onto customers unless driven by specific economic necessities, such as Spotify's royalty payments to artists. It highlights the risks of alienating users through complex pricing structures and emphasizes the importance of maintaining user-friendly practices. The discussion underscores the potential negative impact of the price hike on user satisfaction and revenue, suggesting that Twitter's approach may not effectively maximize profits or user engagement.