Is this the end of free apps from Apple and Google?
Free mobile apps will disappear very soon – says Igor Esipovich, Head of Mobile Development at Artezio, PO of Cost Track project. Based on the latest trends and the changes in mobile development world, he makes a conclusion that in no time free and freemium apps will be replaced with monthly subscription apps. That is why today more and more developers choose subscription model when they create new mobile apps.
Mr. Esipovich says: “Free and freemium apps bring less and less profit with every day.”
He explains: “There was a time when the free apps monetized well thanks to ads, and freemium apps brought enough profit thanks to the in-app purchases. Now the situation has changed and monthly subscription apps are in the lead.”
Apple Policy plays a big part in the rise of subscription model. Apple counts on monthly payments and not on one-time sales, so it promotes this model.
Mr. Esipovich notes “Apple actively motivates developers to implement paid subscription models. Just compare. In case of free and freemium apps Apple takes 30% from the sales of the content and leaves 70% of the profit from the sales to the developer. In case of subscription apps it takes 15% and leaves 85% to the developer.”
Today most profit in online app stores comes from freemium apps.
“Freemium and premium models work better than all the rest, but that’s just for right now. Look at Clash Royale, Clash of Clans, World of Tanks – all these apps are free and you can make in-app purchases in them. If you compare Mortal Combat by Warner Bros. and Assassin's Creed by Ubisoft – they both have hyped brands behind them, but Mortal Combat generates considerably more in-app purchases.”
Mr. Esipovich warns, that soon freemium will lose its appeal and developers will be getting the majority of profit from apps with renewable subscription and free apps will basically cease to exist.