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Report: Most Subscription-Based Apps Do Not Make Money

The only subscriptions I am willing to pay for are:
  • Electricity
  • Gas
  • The internet
  • Rent
  • Continued access to online services that need to be online and benefit from being online (and aren't just "online" to force you to subscribe)
    • Such as online storage or unlimited access to music/movies
    • And NOT like Fusion 360 or Photoshop which has no business being online whatsoever
I'm not willing to reccurringly pay to be able to use an app that isn't primarily any of the above.
 
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To be honest I don’t currently subscribe to any mobile app. It just doesn’t make sense to me. It would only make sense if it was an app I used heavily and they updated it regularly with new features or if it depends heavily on a server. And even then I’d probably think twice before subscribing. The only software I actually subscribe to is Office 365, but mostly for the OneDrive Storage. The office apps are just a nice bonus.
 
GtrDude said:
As usual, Apple laughing all the way to the bank.
They suggested and started this bs in the App Store.
So corrupt it’s unreal.
All about the dollar.
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If developers make less money, so is Apple.

Remember Apple takes a commission, so it's in their interest that customers pay as much as possible.
 
Where interesting that so many people here are against developers making money, but when it comes to developers vs Apple, you cheer for the developers.

Wouldn't you be happy when Apple treats such developers as ****?
 
gamerdude said:
Middle ground is Apple should support allowing apps to be upgraded to a new version with an upgrade fee which is one time until the next version is released. But Apple will lose money if it's not a subscription as they take a 30% cut in all subscriptions.
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Apple would take the same commission fee for upgrades, so I can't see the difference, unless you wish for the developer to make less money.

Apple and developers are in the same boat. The more money developers make, the more money Apple makes.
 
bcortens said:
I think the big problem is Apple doesn’t allow proper upgrade pricing. Sure you can release a whole new App but then you lose all your reviews, existing installs, and user data doesn’t auto-migrate.
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Goodnotes 5 pulled this garbage changing the listing to the subscription based goodnotes6 to keep all of the reviews and putting nagging popups to subscribe even if you paid for goodnotes5. It’s shady and Apple should pull it from the App Store.
 
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Seffers said:
Goodnotes 5 pulled this garbage changing the listing the subscription based goodnotes6 to keep all of the reviews and putting nagging popups to subscribe even if you paid for goodnotes5. It’s shady and Apple should pull it from the App Store.
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Why would Apple pull it?

They love subscription revenues they are taking an unjust cut of.
 
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Let me fix that for you: Most apps do not make money.

The economics just isn’t there. A small 3 person dev shop has annual fully loaded costs of over $600k. No sane developer would choose to make apps unless it’s a side hustle
 
Maybe consumers will actually change the way companies behave. I have hated subscriptions. I want to "OWN" put in parenthesis because we don't technically own anything in America.. We all know this won't change anything subscriptions are designed with the idea that the consumer forgets about the purchase and goes on with their everyday life until one day their credit card expires or gets hacked and they wonder why the got an email from ab company about their subscription.
 
I genuinely believe there's no money for most developers in mobile apps because most people don't actually need 90% of the apps they currently have on their phones.

It doesn't matter how well the app is done, how much effort has gone into building it or how religiously it is maintained, if it doesn't actually add a lot of value it's perceived as overpriced.

That's the sad reality of it for developers. There's the sentiment that people need to spend more, but most apps just aren't worth it (which, again, is not really a criticism).
 
I hate the subscription model and will always opt for a one time purchase if available. I've had a pro license for Acrobat for years now and am really hoping Adobe pushes out a new version that is Apple Silicon compatible (as they have done with all their subscription models).

There is one exception, which I think deserves mention.

Some companies offer a subscription model with a fall back perpetual license (one that springs to mind that I do pay for is JetBrains). I think this is a good compromise and don't have a problem with paying a subscription price knowing that once I've paid a years rates I get the lifelong right to run that version of the software.
 
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Apple pushed it and thought people gonna be subscribing. Looks like their sales department failed again
 
Fantastic news! Share it to all developers.
I refuse to do subscriptions. I won't even subscribe to Netflix/Spotify/Apple etc.
The few "subscriptions" I have purchased were for language learning apps, and were "lifetime subscriptions" which is basically the same as a one-time purchase.
 
I am subscribed to a few apps which do not deliver content.

1) Notability
2) Infuse
3) Play
4) 1password
5) Ivory
6) Paste

I like them, and for me, a subscription is my way of showing my support to the developer and ensure that their apps remain financially viable enough for them to continue working on them.

In general, I feel that users need to be prepared to pay more for apps, not less.
 
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I wonder how much they'd make without Apple's fees. Some fees make sense, but every developer has to pay $100 to get their account yearly already
 
MacRumors said:


Most mobile apps with subscriptions do not make money, a new in-depth analysis finds.

iOS-App-Store-General-Feature-Clorange.jpg

The "State of Subscription Apps" report comes from RevenueCat (via TechCrunch), a prominent mobile subscription toolkit provider. With nearly 30,000 apps utilizing its platform for monetization management, RevenueCat is able to provide a reliable overview of the subscription app landscape thanks to its data collection capabilities. 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.

RevenueCat found that while the top-performing 5% of subscription apps amass revenue 200 times greater than those in the bottom quartile, the median monthly revenue for apps after one year is less than $50. Only 17.2% of apps cross the $1,000 monthly revenue mark. Reaching this milestone significantly boosts the likelihood of further financial growth, with 59% of these apps progressing to achieve $2,500 in monthly revenue, and 60% of those reaching the $5,000 mark. A mere 3.5% of apps achieve $10,000 in monthly revenue.

Health and fitness apps generate at least twice the revenue of all other categories combined, both in the bottom quartile and among the top 5% of earners. In contrast, travel and productivity apps face the most significant challenges, with even the top performers in these categories struggling to make over $1,000 per month after a year on the market.

Despite these statistics, the subscription app market continues to grow and the average price for monthly subscriptions has increased by 14% from $7.05 to $8.01. However, the report also noted a recent shift in consumer behavior, with a 14% drop in subscriber retention over 12 months.

Article Link: Report: Most Subscription-Based Apps Do Not Make Money
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I will never, ever, ever sign up to a subscription service. By outright or hard pass.
 
" RevenueCat is able to provide a reliable overview of the subscription app landscape thanks to its data collection capabilities. "

I wonder if the end users are aware how much of their data is captured and how is may be being used or resold.
 
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Yujenisis said:
Interesting. I divorced myself from a Fantastical subscription and fell back to my grandfathered version which I purchased outright. They keep adding more and more buttons I can’t use because I don’t subscribe which clutter the interface and make me spend time actively searching for a replacement as the polish I so loved is bloating. Calendar 366 comes close, but lacks most of the features, ease of use, and polish.

The problem as I see it, isn’t that developers don’t deserve to charge a subscription (if not API and server costs than support represents an ongoing drain), it’s that a subscription needs to offer ongoing improvements that are compelling to users to keep retention.

Fantastical gatekeeps all these team and collaborative features that I’d wager 90% of its former users do not use and bundles it with useful things like weather that are great but also half-baked like an afterthought when having a great weather/calendar app is actually unique and compelling.

Now if Fantastical made an email client half as amazing as their calendar and offered a whole productivity suite for the huge price their presently asking (~$60/yr) is a much more compelling value. Throw in a best-of-breed weather app that also integrates with the calendar? I’m immediately sold.

Fantastical for my money is still the best iOS calendar app. It’s just simply too costly for what it offers for the majority of users and the ongoing improvements for those who continue to subscribe are underwhelming IMO.
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I've tried Fantastical, but couldn't get past the pricing. $60/yr? I can pick up a MS Office perpetual license for $30-$40. And now, MS Outlook is free. Just don't see Fantastical's value to be more than that of MS Office or $60 better than Outlook.
 
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Wait! My 72 fart apps don’t require a subscription?
this subscription model is out of control, we could do with a few less apps.
 
Kevin2055 said:
Photoshop and MS office make sense as you will pay lots more to own them than yearly subscription.
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There are free and inexpensive alternatives to both. And Office could regularly be had for <$100.
I think most of their business is from Enterprise customers. But for individuals, I don't think it makes sense.
 
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