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I think many have argued that an App is a product, and you dont upgrade your Washing Machine, Set Top Box or Routers etc, you buy a new one. Hence you buy a new App.

That is all perfectly fine, but it turns out most users, ( Not developers or Geeks ) will only buy a new product when their product stop working or became OUT DATED. Since most App will continue to work for as long as it is, users have no incentive to buy a newer version.

That is why developers wanted a Subscription model. It is hard to sell to its existing users pool, a rental model allow them to have a continuous revenue.

With upgrade model, it is basically offering a discount for its existing users, instead of telling them to buy a New version.

And it turns out, the more subscription Apps there is, the more i like the upgrade pricing model better.

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