As Weekly Subscriptions Surge, iOS Apps Discover New Revenue Highs

The dominance of weekly subscriptions in iOS app revenue has just been underscored by new data. With these plans making up 46% of app earnings, they’ve staged a coup of sorts on the revenue model, as revealed by a recent report from app revenue management platform, Adapty. 11,000 apps and $1.9 billion in revenue later, the survey found that their popularity is booming, with weekly subscriptions growing 9.5% this year. In contrast, one-time purchases registered a growth of 6.3% in Q1. Alongside the rise in the number of these subscriptions, pricing too has gone north, with average weekly subscriptions in the EU and the US soaring by 12.2% and 12.5% to $8.3 and $8.1, respectively. Contrastingly, other paid plans – monthly, yearly and lifetime subscriptions – have experienced a dip. The use of weekly plans isn’t confined to lesser-known names in the app world. Tech titans like Spotify and Canva have been dabbling with them in various markets, pointing to a broader trend. Within the whopping revenue being raked in by in-app purchases, the US takes the lion’s share at 48.9%, with Europe trailing at 24.8%. Money-making ability aside, they also excel in value, with U.S. installs generating 3-4 times more revenue than other regions. They have particularly gained traction in LATAM and MEA, from where they bagged 60% and 53% of the revenues respectively. Europe, despite being second in in-app purchases, saw them constituting no more than 38% of their revenue. Yet, this growth spurt isn’t without its perils. As the prevalence of weekly plans soars, retention becomes a hurdle, with only a small percentage staying beyond a year as the novelty wanes. As Ariel Michaeli, Appfigures’ founder and CEO, pointed out, while these weekly plans may kickstart growth, they cast a long shadow on lifetime value of customers. Yet, in these buoyant figures, app makers may just find more food for thought on how to balance immediate pay-offs with sustainable profits.