Mobile app developers are gearing up to intensify their push for subscription-based models in the coming year, driven by disappointing revenue figures from over 30,000 apps analyzed by RevenueCat.
Struggling to Break $1,000 Monthly Revenue
The analysis, reported by ArsTechnica, reveals a harsh reality: the majority of apps are grappling to surpass the $1,000 monthly revenue mark. RevenueCat, known for its subscription toolkit, counts prominent names like Reuters, Buffer, and Notion among its clientele, asserting that a whopping 90% of apps with in-app subscription platforms utilize their services.
Imbalance in Revenue Distribution
A staggering statistic emerges: a mere 17% of the scrutinized apps manage to rake in at least $1,000 monthly. Even more concerning, the proportion of apps achieving higher monthly revenue dwindles further.
Monthly Tracked Revenue (MTR)
RevenueCat’s insights paint a clearer picture: once an app surmounts the $1,000/month threshold, its chances of reaching $2,500/month or even $5,000/month significantly increase.
Subscription Fatigue Takes its Toll
Yet, challenges loom large. Convincing users to subscribe and retain their subscriptions poses a formidable hurdle. Compared to previous years, the retention rates after a year have seen a noticeable dip, signaling a rise in subscription fatigue among users.
Anticipated Rise in Subscription Prices
Expectations loom of a surge in subscription prices over the coming year. With a 14% increase noted in the average monthly rate since last year, factors like escalating customer acquisition costs and the desire to exude premium appeal could drive up subscription fees, posing economic quandaries for developers.
Exploration of Alternative Revenue Sources
Amidst these challenges, RevenueCat anticipates a trend toward exploring alternative revenue streams such as in-app purchases and affiliate marketing. As developers seek sustainable income models, diversification in revenue strategies may prove pivotal in navigating the evolving landscape of app monetization.
In the relentless pursuit of profitability, developers stand poised to navigate a landscape fraught with challenges, where innovation in revenue models emerges as the beacon of hope.