Report: Most subscription apps don't make money

By Hartley Charlton

Most subscription-based mobile apps don't make money, a new in-depth analysis has found.

The State of Subscription Apps report comes from RevenueCat (via TechCrunch), a well-known provider mobile subscription tools. With nearly 30,000 apps using its platform to manage monetization, RevenueCat can provide robust visibility into the subscription app landscape through its data collection capabilities. The analysis includes data from more than 29,000 apps and 18,000 developers, which collectively generated more than $6.7 billion in revenue and more than 290 million subscribers.

RevenueCat found that the top 5% of subscription apps accumulate income. 200 times more than the bottom quartile users, the average monthly app income after a year is less than $50. Only 17.2% of apps exceed the $1,000 monthly revenue mark. Reaching this milestone significantly increases the likelihood of continued financial growth: 59% of these apps reach $2,500 in monthly income, and 60% of them reach the $5,000 mark. Just 3.5% of apps generate $10,000 in monthly revenue.

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

Despite these statistics, the subscription app market continues to grow, and the average price of a monthly subscription increased by 14% from $7.05 to $8.01. However, the report also notes a recent shift in consumer behavior, with 12-month subscriber retention rates down 14%.


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