They’re not friendly to developers, to end users (seasoned or any user beyond introductory), or to hardware longevity (c.f., accelerated, planned obsolescence).
What they are friendly to are the platforms’ parent companies and their shareholders.
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Report: Most Subscription-Based Apps Do Not Make Money
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They’re not friendly to developers, to end users (seasoned or any user beyond introductory), or to hardware longevity (c.f., accelerated, planned obsolescence).
What they are friendly to are the platforms’ parent companies and their shareholders.
This is the one type of app I give a pass to, for the following reasons:
1) Cross-platform, they need to account for OS changes across Windows or MacOS
2) Multiple browers, they need to account for browser upgrades across not only multiple devs but across the OSs too.
I think this type of app provides a lot more "on the fly" support than other apps, like Office365. Yes, in theory they should be able to figure out a per version price but again I see this type of app as being different.
The worst subscription is the one when it is needed for a Hardware I just purchased outright. They provide a free version App with Ads everywhere to push me to subscribe.
I bought a security cam before the subscription became common. They changed the App since then. I don't use the cam enough to buy a different brand and dump the App.
Now, I always check the details before I buy software or hardware.
I bought a security cam before the subscription became common. They changed the App since then. I don't use the cam enough to buy a different brand and dump the App.
Now, I always check the details before I buy software or hardware.
This is one of my main hangups of "subscribing"
Devs are skirting the whole concept of providing a value proposition with which we can evaluate if we'd like to pay for an upgrade or not.
One common retort is that it allows them to "provide value continuously over time"
That is great if you trust the developer to actually do that -- IME, it's pretty hit or miss.
Like adobe… prefer to buy once. (All changes they made are not really interesting) using adobe since 1995…. (So yes had to buy some new versions for OS changes… but other than that…. No way)
Lol, yes I know this feeling… i’ll keep using the free version even while they make it harder to use… forcing to paid and cloud… no thank you
When I see an app is subscription-based, it is a significant deterrent. To the tune of a hard pass 99% of the time.
The very last thing users are wanting/needing/asking for is yet another app subscription. Holy F, we're subscription fatigued! With maybe the exception of entertainment streamers, no one wants to rent apps. Period. Charge what you believe your app is worth. And do that once. If may app search/purchase behavior is any indicator, devs would maker more money if they offered they apps for sale, not rent.
The very last thing users are wanting/needing/asking for is yet another app subscription. Holy F, we're subscription fatigued! With maybe the exception of entertainment streamers, no one wants to rent apps. Period. Charge what you believe your app is worth. And do that once. If may app search/purchase behavior is any indicator, devs would maker more money if they offered they apps for sale, not rent.
You know who makes a lot of money from app subscriptions? Apple.
According to website appfigures, the iOS app store has 232,000 apps that have paid subscriptions, and Apple is getting 30% of the revenue from all those subscriptions.
According to website appfigures, the iOS app store has 232,000 apps that have paid subscriptions, and Apple is getting 30% of the revenue from all those subscriptions.
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I’m a developer in that top 3% making over $10k per month. We use RevenueCat and they are awesome by the way.
Our app is called iCollect Everything. It’s an app to help manage collectibles and home inventory. Check it out on the App Store. We do the following:
- Users get to use the app 100% for free for the first 15-30 items they add into the app (depending on the collectible type they have). No restrictions. Right from the get-go.
- Once they hit the 30 item mark, we ask that they pay a one-time for life fee to unlock unlimited items for that collectible type. For a higher fee (deeply discounted) they can unlock all collectible types. One-time fee, for life.
- Once a user has unlocked unlimited items, a Pro tab appears. In the app this Pro tab has options that are for our most hardcore collectors… and it unlocks things that are OPTIONAL to use if they want. Desktop companion apps for Windows/Mac, extra themes, beta feature access, priority support, real-time estimated values on some collectibles, and more. It’s a yearly fee. But users don’t have to pay it! They can just completely ignore the tab and use the app for life if they want.
- We let people know that we’re simply a two-person company running this amazing app. And we respond to emails within 24 hours. Sometimes people tend to think we’re a big polished company, but when we let them know it’s just two best friends trying to make a living for their family, people are more likely to buy as well. Having that personal connection between developer and customer can go a long way, subscription or not. Many devs are just focused on money money money.
We’ve shown that it works really well when you give people options and you don’t bombard them upfront requiring subscriptions. Our growth and revenue has been crazy good this year, and people feel we provide value on a number of different tier levels depending on their needs. And I think most of our users who subscribe realize why they are paying the yearly fee… because what they are getting isn’t just a mobile app anymore, it’s a complete front-to-back multi-app service with features that aren’t easy to implement and do require maintenance.
I personally hate subscriptions too, so we try our best to only require it when the development work for us requires some type of recurring revenue too.
All of our main competition requires subscriptions no matter what, so I’m proud that we don’t do that and can be successful from it.
Our app is called iCollect Everything. It’s an app to help manage collectibles and home inventory. Check it out on the App Store. We do the following:
- Users get to use the app 100% for free for the first 15-30 items they add into the app (depending on the collectible type they have). No restrictions. Right from the get-go.
- Once they hit the 30 item mark, we ask that they pay a one-time for life fee to unlock unlimited items for that collectible type. For a higher fee (deeply discounted) they can unlock all collectible types. One-time fee, for life.
- Once a user has unlocked unlimited items, a Pro tab appears. In the app this Pro tab has options that are for our most hardcore collectors… and it unlocks things that are OPTIONAL to use if they want. Desktop companion apps for Windows/Mac, extra themes, beta feature access, priority support, real-time estimated values on some collectibles, and more. It’s a yearly fee. But users don’t have to pay it! They can just completely ignore the tab and use the app for life if they want.
- We let people know that we’re simply a two-person company running this amazing app. And we respond to emails within 24 hours. Sometimes people tend to think we’re a big polished company, but when we let them know it’s just two best friends trying to make a living for their family, people are more likely to buy as well. Having that personal connection between developer and customer can go a long way, subscription or not. Many devs are just focused on money money money.
We’ve shown that it works really well when you give people options and you don’t bombard them upfront requiring subscriptions. Our growth and revenue has been crazy good this year, and people feel we provide value on a number of different tier levels depending on their needs. And I think most of our users who subscribe realize why they are paying the yearly fee… because what they are getting isn’t just a mobile app anymore, it’s a complete front-to-back multi-app service with features that aren’t easy to implement and do require maintenance.
I personally hate subscriptions too, so we try our best to only require it when the development work for us requires some type of recurring revenue too.
All of our main competition requires subscriptions no matter what, so I’m proud that we don’t do that and can be successful from it.
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I'm not a collector, but you're making me want to buy your app just to support developers that aren't asshats. Thanks for not going subscription!
Not a reliable source at all.
Developers choose subscription model because they make money. Maybe not the ******** developers that this company attracts as customers.
Developers choose subscription model because they make money. Maybe not the ******** developers that this company attracts as customers.
On one hand, Looking at it from developers' viewpoint, a subscription seems fair: They put ongoing effort into maintaining and improving their apps. It's not like you buy a house and that's what you get. It's more like you buy a house and the builder continues to fix little things that go wrong, and occasionally build an addition or add a bathroom. If builders did that, they'd go out of business.
On the other hand, like so many of you, I have subscription fatigue. Plus, I don't pay close enough attention to all of the subscriptions I accumulate over time, I really should cancel the ones I don't use. That's on me, but like many of you, I work a ton of hours, so my to-do list items that aren't a high priority usually don't get done.
For many apps, if you add up the subscription fees, it's more than you'd pay if the app were offered for a one-time price.
Also, most of us don't get nearly as much added value from updates as we got from initially acquiring the app. So it seems unfair for us to keep paying the same amount year after year.
A one-time price is easier. You know what you're paying, there's nothing to keep track of, and you're paying a finite amount.
If there needs to be a compromise, what I'd suggest is:
A one-time price up front buys the app and a year of updates. After that, you can either pay a small maintenance fee for continued updates or you can continue using the app you bought without getting further updates.
On the other hand, like so many of you, I have subscription fatigue. Plus, I don't pay close enough attention to all of the subscriptions I accumulate over time, I really should cancel the ones I don't use. That's on me, but like many of you, I work a ton of hours, so my to-do list items that aren't a high priority usually don't get done.
For many apps, if you add up the subscription fees, it's more than you'd pay if the app were offered for a one-time price.
Also, most of us don't get nearly as much added value from updates as we got from initially acquiring the app. So it seems unfair for us to keep paying the same amount year after year.
A one-time price is easier. You know what you're paying, there's nothing to keep track of, and you're paying a finite amount.
If there needs to be a compromise, what I'd suggest is:
A one-time price up front buys the app and a year of updates. After that, you can either pay a small maintenance fee for continued updates or you can continue using the app you bought without getting further updates.
The numbers are quite impressive regarding the success of sub apps: "...The analysis delves into data from over 29,000 apps and 18,000 developers, collectively responsible for more than $6.7 billion in revenue and over 290 million subscribers." That is a lot of revenue and users just going thru RCat. The reality is app usage in the App Store most likely follows a very extreme power law distribution. RCat supports this with stmts like "...while the top-performing 5% of subscription apps amass revenue 200 times greater than those in the bottom quartile...". Most devs/apps are part of the "long tail problem" meaning they have no real hope of getting up the steep part of the distribution curve and making real bucks. Tim Apple, though, is very happy that these devs believe in the hope of the App Store because the hopefuls (18,000 * 0.95 * $99/year) pay Tim about $1.7 Billion per year (just for RCat devs). Man that is good for Tim.
I admit, the only apps paid for on my iPhone are the Office 365 apps, which were paid for from my employer.
For every other things i have a lot of apps, that are absolutely $free - also no advertising accepted by me. Basically the same as on Windows, with the exception of few games, i declare absolutely necessary and were purchased some years ago. Subscription? Never!
For every other things i have a lot of apps, that are absolutely $free - also no advertising accepted by me. Basically the same as on Windows, with the exception of few games, i declare absolutely necessary and were purchased some years ago. Subscription? Never!
Just so you’re aware, ReveneueCat is probably the number #1 SDK that Android and iOS developers use outside of native library’s that developers use. It’s extremely popular and very easy to implement. We use it also because it allows for in-app purchases to be cross-platform between iOS and Android.
@lupinglade
I hear ya' my friend -- it's very angering indeed
The "Services" push is a frustrating turn of events to many of us
I hear ya' my friend -- it's very angering indeed
The "Services" push is a frustrating turn of events to many of us
As a working professional and business owner who subscribes to serval apps, here's my 2 cents.
If I find value in the product and it's something I use regularly to run my business, subscriptions are much easier for keeping everything up to date. Paying upfront for annual subscriptions can be more cost effective, not always.
Professional level apps tend to have really good tech support. That's very important when things go sideways.
The important thing you have to ask yourself is 'Do you find value in the product'.
If I find value in the product and it's something I use regularly to run my business, subscriptions are much easier for keeping everything up to date. Paying upfront for annual subscriptions can be more cost effective, not always.
Professional level apps tend to have really good tech support. That's very important when things go sideways.
The important thing you have to ask yourself is 'Do you find value in the product'.