Apple Is Pushing Developers Toward Subscriptions

[ace (Adam Engst)]

@Simon

But honest to God, isn’t part of what’s changed also that you now see people who expect to be able to make a living off of an iPhone app, whereas back in the day many shareware developers had actual day jobs and their shareware was essentially a hobby (often albeit one that took up much of their time outside work) that brought in at best some beer money? While more expensive apps came from real software houses that employed dozens of real engineers dedicated to nothing but that pro product? Maybe we’ve also come to expect to get it all for nothing.

I think there is something to that. People believe they have the Next Great App idea, and they’re willing to devote $15K or more to development. In the shareware days, programmers mostly didn’t expect much, so it wasn’t a huge problem when they didn’t get it.

But the other problem with people willing to invest lots of money into development is that it raises the bar, such that the small developer who’s just trying to make something neat can’t compete with the high production values of the app that’s attempting to become a real business. It’s sort of the problem with VC-backed companies with silly ideas making it hard for small self-funded companies to compete, even if they have a better product. Anything that raises the bar makes it harder for the small fish.

[TGarf]

Favorite small fish who is still swimming among the sharks - Alco Blom and Url Manager Pro. He has plunged into 64-bit territory, still only $35 for what to many is indispensable bookmark manager. (No, I’m not related to him, but he updates his app almost daily responding to feature suggestions and found bugs).

[jochen (Jochen Wolters)]

You’re absolutely right, of course. And I do remember that there was a great spin about, “Is it worth not really knowing what you get in terms of quality and even malware, when you download pirated copies vs. paying just a buck for a perfectly legal track in great quality?”

If you combine the two perspectives, though, you can see that there always were, and always will be, people who claim that whatever you offer them, is overpriced.

As for the Zune: yup, remember that one, especially since its text/typography-based UI concept was the basis for the Windows Phone OS. I never really liked that UI, just because it was so text-heavy, but it sure was an interesting approach.

In terms of amusing stories of promises not kept, I usually prefer pointing towards the PlaysForSure saga instead of Zune — the name is just too sweet to ignore, given the context. ;)

DRM servers related to PlaysForSure were turned off August 31, 2008, meaning that any operating system upgrade or migration rendered all content unplayable.

[romad (Dennis Swaney)]

Since this topic has been resurrected, I’ll add a recent experience.

A vendor whose application I’ve used for years recently started pushing people toward the subscription version. I priced out the subscription with buying the standalone product and updating it every year or two. I discovered that while the flat-rate annual subscription price seemed low, it couldn’t compete with buying the standalone and then updating it staring at the two year mark. The overall annual average cost for the standalone decreased every year becoming less costly than the flat-rate subscription. So I’m staying with the standalone product.

[epi]

I won’t have subscription software on my computer as a matter of principle. For me, the biggest issue is one of cost. What would it cost if all the software that I rely on on a regular basis was only available by subscription? No more open source, no more perpetual licenses. Could I afford to run a computer anymore?

To answer this question I’ve tried to place an annual value on all the software that features in one of my regular workflows. As reference costs I’ve taken the annual subscription costs for four well know subscription apps/packages.

• Adobe Creative Suite $734
• Office 365 $74
• 1Password $39
• Ulysses $49

Note that these prices are USD but based on the subscription rates in Europe (which I would have to pay), which are always higher (probably due to freight costs??).

For each app in my list I’ve asked the question, if 1pw/Office365/Ulysses is really worth $x per annum then how much is this app worth? I’ve tended to compare utility apps with 1pw and writing productivity apps with one of the other packages. (Nothing got compared with CC—it’s really in a class of its own.)

For each item on my list I have made a brief comment and then present the comparison. Values are rounded to the nearest dollar. Obviously this is very personal—some apps that are important to me would not be to someone else, and vice-versa. (It would be very interesting to see how the costs would stack up for other people too.)

BBEdit
: Can’t live without it; use it all the time. At least Office365 * 1.5 => $111

Bookends
: When I need it I need it: 1 * 1pw $39 p.a.

Bookpedia
: 0.5 * 1pw = $20 p.a.

Calendar
: Yes, free apps would have a price too if everything were subscription: 1.5 * 1pw = $59 p.a.

Carbon Copy Cloner
: responsible for my daily backups so worth a lot: 2 * 1pw = $78 p.a.

Contacts
: at least as useful as 1pw; I’d be lost without it = $39 p.a.

Dash
: Important but not everyday software 0.5 * 1pw = $20 p.a.

Deckset
: probably worth 0.5 * Ulyesses = $26 p.a.

Default Folder
: Can’t live without it, even though I’m normally not aware that it is there: 1.3 * 1pw = $51 p.a.

Devonthink
: 1.2 * Office365 = $89 p.a.

Dictionary
: Such a useful app sitting there all the time: 0.5 * Ulysses = $25 p.a.

iCab
: this entry represents all web browsers in which I spend a lot more time than I ever did in office: Office365 * 1.5 = $111 p.a

iTunes
: wouldn’t pay a cent for it = $0

Keyboard Maestro
: A gem that’s easily worth as much as 1pw = $39 p.a.

Keynote
: not used very often: 0.2 * Office365 = $15 p.a.

LaunchBar
: another app I can’t live without: 1.5 * 1pw = $59 p.a.

Firewall
: essential whether Little Snitch or something at router level: 2 * 1pw = $78 p.a.

Anti-virus
: I don’t run any, but I do firewall well. Anti-virus software is the one category of software that I really do feel justifies the subscription model.

Audio Highjack
: 0.5 * 1pw = $20 p.a.

MailMate
: A good mail client is essential and Mail has ceased to be that for me. Worth at least 0.75 * Office365 = $56 p.a.

Marked2
: always on in the background: 0.5 * Ulysses = $25 p.a.

MySQL viewer programme
: Sequel Pro or similar. Not needed often but very important when it is: 0.5 * Ulysses = $25 p.a.

PathFinder
: Up to version 7 this was worth easily 2 * 1pw = $78 p.a. (V.8 is worth $0)

Aperture
: I can’t find a suitable replacement and can’t face the thought of redoing 10,000+ edits. So happy that it still runs under High Sierra. Easily worth 1 * Office365 = $74 p.a.

Preview
: My standard go to pdf viewer: 1 * 1pw = $39 p.a.

Script Debugger
: Important when I need it, but not in daily use 0.8 * 1pw = $31 p.a

Scrivener
: I use this rather than Uylsses and since it suits my workflow much better 1.3 * Uylsses = $64 p.a.

SpamSieve
: made email fun again 0.8 * 1pw = $31 p.a.

Spell Catcher
: So old that I’m amazed it still works but happy because I can’t live without it. 2 * 1pw = $78 p.a.

Swinsian
: self explanatory :-) 1.3 * 1pw = $51 p.a.

Tinderbox
: almost priceless; at least 1.5 * Office365 = $111 p.a.

Fusion
: 0.7 * Office365 = $52 p.a.

MoneyWorks
: don’t you think a good finance app has to be worth at least twice as much as a password manager? = $78 p.a.

MS Office
: I’m still using the 2008 version, really except for Excel I only have it to open documents from other people. But the price on this subscription is set so I can’t decide what it would be worth to me = $74 p.a.

Adobe Creative Suite
: Sometimes I live in InDesign for weeks on end; other times hardly touch it. But I have so many archived documents (and ongoing projects) that I can’t be without it. And I have occasional need for Illustrator, PS or Acrobat. Subscription price is fixed by Adobe = $734 p.a.

1Password
: Yes I do use this, but I don’t trust any programme that wants to upload all my passwords to the cloud so I stopped upgrading years ago when it was clear that was the direction they were moving. Reference subscription = $39 p.a.

There are several other apps lurking in my system that I haven’t included since they aren’t part of any regular workflows and I could probably live without them. All up the total for what I’ve listed is $2520. Would I really want to be paying that much for software per year. The reality is that I couldn’t over the long term.

The subscription model works well for companies that get in early and secure their share of the pie (Adobe). But if all software was subscription I’m sure that many people would be making do with less. It also works to the advantage of companies that have a practical monopoly for a particular genre of software.