Will Mobile App Subscriptions Affect App Revenues?

I was reading a Wall Street Journal article last night about how the New Yorker is attempting to publish paid apps on Apple’s app store. In it’s current form, visitors to the store must download each issue separately, incurring a $4.95 charge each time. Obviously this will be annoying to many consumers, especially in this age of content delivery. As such, the New Yorker is pressuring Apple to create a subscription like feature. And at that point, a really weird thought popped into my head.

Would the introduction of subscription apps affect the ability for single-pay applications?

Give me a second, let me walk through my thinking:

  1. Consumer “Joe” is an active iPad user and spends about $10/month on applications, music, etc. He’s grown accustomed to seeing bills of this size from Apple.
  2. Joe now sees two of his favorite magazines are now offered via a subscription online for $4.95/month and decides to sign-up thinking, “This is great, more stuff for my iPad. And it’s such a great deal, as this is usually too expensive in print.”
  3. Now, his monthly spending at the iTunes store has doubled, making Joe worry he’s spending too much for this device. He now thinks he should cut back a bit.
  4. Not wanting to give up his magazines, Joe cuts back on other “silly” or “frivolous” games for his iPad, bringing his monthly spend back to it’s pre-subscription norm.

So I guess my question is this? Do users who fit under this or similar scenarios already unofficially pre-budget how much they’ll spend on downloads per month? And if so, will subscriptions quickly eat into the share of pocket that consumers like Joe would be willing to spend?

Obviously the content would have to be compelling enough, but subscription-based content has a long history and may seem “easy” for some consumers to quickly sign-up for on some platforms. Whether¬† these subscriptions will make it just as easy to opt-out remains to be seen.¬† If consumers get locked into long-term commitments like we see today in print versions, we might see an interesting blip on the radar of other application providers.

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