According to a recent analysis by RevenueCat, the top 5% of apps are raking in a staggering 200 times more revenue than the bottom quartile after their first year in the market. This data sheds light on the subscription app economy, revealing that the median monthly revenue for apps is less than $50 USD after 12 months.
The report, which is based on data from over 29,000 apps and 18,000 developers generating over $6.7 billion in revenue and having over 290 million subscribers, also highlights that only 17.2% of apps manage to reach $1,000 in monthly revenue. However, once they hit that threshold, more apps tend to reach higher revenue levels.
Interestingly, health and fitness apps seem to be the top performers in terms of revenue after a year, while travel and productivity apps struggle the most. It was also noted that North America-based apps have four times the monetization of the global average, while Japan and South Korea monetize better on Android than iOS.
One concerning trend identified in the analysis is the drop of around 14% in the share of monthly subscribers retained after 12 months, indicating that consumers are canceling subscriptions they no longer find valuable. As a result, more apps are expected to adopt no-trial subscription plans, raise subscription prices, and combine subscription models with other monetization methods in the coming year.
Overall, the analysis provides valuable insights for app developers and businesses looking to succeed in the competitive app market, emphasizing the importance of developing a solid monetization strategy and constantly adapting to meet consumer needs and preferences.
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