News

New Report Claims Most Developers Not Profiting From Subscription-Based Apps

A new report finds that most subscription-based apps do not make money for their developers.

The “State of Subscription Apps” report by RevenueCat (via TechCrunch), a prominent mobile subscription toolkit provider. Nearly 30,000 apps utilize the RevenueCart platform for monetization management, the provider can provide an overview of the subscription app landscape thanks to its data collection capabilities. The analysis uses data from over 29,000 apps and 18,000 developers, which collectively account for more than $6.7 billion in revenue and over 290 million subscribers.

RevenueCat found that the median monthly revenue for apps after one year is less than $50. The top-performing 5% of subscription apps amass revenue 200 times greater than those in the bottom quartile. Only 17.2% of apps cross the $1,000 monthly revenue mark. 59% of these apps achieve $2,500 in monthly revenue and 60% of those apps the $5,000 mark. Only 3.5% of apps make $10,000 in monthly revenue.

Health and fitness apps are tops in revenue, bringing in at least twice the revenue of all other app categories combined. Travel and productivity apps face the strongest revenue headwinds, as even the top performers in those categories struggle to make $1,000 per month after 12 months in the App Store.

The report shows that the average price for monthly subscriptions has increased by 14% from $7.05 to $8.01. The report also noted there was a 14% drop in subscriber retention over 12 months.

Chris Hauk

Chris is a Senior Editor at Mactrast. He lives somewhere in the deep Southern part of America, and yes, he has to pump in both sunshine and the Internet.