![]() Mobile-app developers hoping for recurring dollars are appealing to a user base increasingly deterred by subscription fatigue. RevenueCat said that compared to its 2023 report, the portion of monthly subscribers retained after one year declined by 14 percent, "impacting both the best and worst performers alike.” Other insights include monthly subscriptions having a median first renewal rate of over 60 percent but maintaining only 36 percent of the original batch of subscribers by the time it's time for a third renewal. Subscription fatigueĬhallenges in mobile app subscriptions include not only convincing people to pay for an app but also convincing them to do so repeatedly. RevenueCat's study quoted Ariel Michaeli, co-founder and CEO of mobile app developer reporting platform Appfigures, as saying that company data found that 59,000 new subscription-based apps came out in 2023. Still, with advertising spending continuing to tumble and developers looking for a way to generate recurring revenue to support app maintenance, support, and advancements, subscriptions are expected to continue being developers' primary strategy. "When segmenting down to the top 10 percent or even top 5 percent of performers, revenue numbers increase rapidly, going from $223 (upper quartile) to $971 (Q90), to $2,352 (Q95) in monthly revenue," the report says. The percentage of examined apps making more monthly revenue is even lower: With these caveats in mind, the 120-page report still provides unique details about a claimed $6.7 billion in subscription revenue touching over 18,000 developers and 290 million subscribers using the Apple App Store and Google Play Store.Īccording to RevenueCat, about 17 percent of the apps examined make at least $1,000 each month. The San Francisco-based company also claims to support "everything from niche indie apps to several of the top 100 subscription apps," which notably suggests that most of the top-100 subscription apps aren't included in this study. The report claims that 90 percent of apps with an in-app-subscription platform use RevenueCat. RevenueCat's report didn't list all apps studied but claims Reuters, Buffer, Goodnotes, PhotoRoom, and Notion as customers. The 7-year-old company's study shared today, as spotted by TechCrunch, said the firm examined apps using its in-app subscription SDKs. RevenueCat makes a subscription toolkit for mobile apps. Numbers that RevenueCat recently shared examining over 30,000 apps suggest why: Most apps struggle to reach $1,000 per month in revenue. Mobile app developers are expected to push subscriptions more aggressively over the next year. ![]() Silas Stein/picture alliance via Getty Images reader comments 250
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