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Most apps with subscriptions fail to make more than $1,000 per month

Mar 12, 2024 - appleinsider.com
The "State of Subscription Apps" report by RevenueCat provides an in-depth look at the struggles of app developers to generate sufficient income. The report, which includes data from 30k subscription apps and 290 million subscribers, reveals that most apps are unable to generate substantial revenue, with only 17.2% reaching $1,000 in monthly subscriptions. However, those that do reach this threshold tend to grow more easily, with 59% reaching $2,500 and 60% of those reaching $5,000. Despite this, only 3.5% of all apps reach $10,000 in monthly revenue.

The report also highlights a 14% year-over-year drop in subscriber retention after 12 months, with only 10% of those re-subscribing within another year. RevenueCat CEO Jacob Eiting attributes this to inflation-induced price raises leading to increased churn. Despite these challenges, Eiting predicts that AI will disrupt the market in 2024, suggesting a second act for mobile as the interface for AI. The full report is available for viewing upon providing an email to RevenueCat.

Key takeaways:

  • A report from RevenueCat provides data on 30k subscription apps across 290 million subscribers, revealing that only 17.2% of apps reach $1,000 in monthly subscriptions.
  • Despite the challenges, apps that reach $1,000 in monthly revenue have a good chance of growing, with 59% reaching $2,500 and 60% of those reaching $5,000.
  • The retention rate of subscribers after 12 months dropped by 14% year-over-year, but 10% of those re-subscribed within another year.
  • RevenueCat CEO Jacob Eiting predicts that AI will be a disruptor in the app market in 2024, suggesting a second act for mobile as the interface for AI.
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