New data from Sensor Tower offers some interesting insights into the way users pay for apps.
The report reveals that, in the United States alone, App Store users spent an incredible $3.6 billion on the top 100 subscription apps of the year, up more than 16% on the previous year’s $3.1 billion, as more consumers opt for subscriptions via applications.
Overall, subscriptions made up 24% of App Store revenue, which was $15.3 billion.
YouTube was the most popular subscription app in the United States last year, offering a new ad-free service, whilst Tinder came in second place with its premium add-on service.
In 2019, YouTube became the first app to generate more than $1 billion in in-app user spending alone, as consumers spent more on paying for ad-free video experiences.
Meanwhile, Sensor Tower’s data also offers a look at the Google Play Store in the United States.
By comparison, users spent just $1.1 billion on app subscriptions, though that figure is up more than 42% from the $775 million that users spent there in 2018.
Sensor Tower’s data reveals that the top ten subscription apps across iOS and Android grew their revenue by 10% in 2019, but the apps in the top 100 grew revenue by 35% in the same period, demonstrating the subscription model is growing in popularity and general adoption.
What’s important to note, however, is that in-app purchases and subscription-based apps do cause divides within the community, as some prefer to pay once for an app and receive all of its features.
In recent years, Apple has begun encouraging developers to sell apps via a monthly subscription, as Apple will earn a 30% cut every month. The company recently dropped its monthly revenue cut, allowing developers to keep 85% after some many months.
Back in 2017, the company began allowing developers to offer free trials and lower introductory pricing to encourage users to engage with subscription apps and sign up.
Are you a fan of subscription apps? How much do you spend? Let us know your thoughts on social media and check back soon for news and rumors on everything Apple, every week.
