Subscription services are exploding in all areas. On Netflix or Amazon Prime, you have already been confronted with the increase in prices, which has pushed many subscribers to cancel their video streaming services at the end of 2023.
While the number of downloads fell by 2.3% in 2024user spending has paradoxically increased by 15.7%. A situation which can be explained by a major change in the economic model of developers.
Revenues that explode thanks to subscriptions
Only 5% of apps in the App Store currently offer a subscription plan. However, these apps generate nearly half of total developer revenue, or 48% of $91.6 billion spent on the Apple platform. Despite a decline in app downloads, App Store revenue jumped 24.2% compared to 2023, pushing more publishers to adopt this model.
This rapid growth can be explained by better monetization of active users. Where a single purchase brings in a few euros once, the subscription ensures regular income for developers. An application at 4.99 euros per month thus generates more than 59 euros per year per user. A godsend when we know that iPhone users bring in on average 4 times more profits to application developers than Android users.
Possible alternatives for users
Faced with the proliferation of subscriptions, alternative solutions are emerging. More and more apps offer a paid update system: you keep the old version if you don't want to pay, or you benefit from the new features for a one-time payment.
These models are attracting a growing number of independent developers. The Keyboard Maestro and Alfred applications, for example, have offered this system for years, allowing users to better control their spending.
Others opt for a “limited premium” with free updates for a year. An approach which could inspire other publishers in the face of the growing dissatisfaction of users with the multiplication of subscriptions. If you want to discover a way to reduce your subscription expenses, one site offers a solution.
By : Keleops AG
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