According to a new report from App Revenue Management Platform Adapty, weekly subscriptions are now one of the most popular ways iOS apps can make money, with these plans contributing 46% to bottom-line profits.
The survey, which observed revenue of $1.9 billion across more than 11,000 apps, noted that weekly plans increased 9.5% this year compared to one-off purchases. Other paid plans, including monthly and annual lifetime subscriptions, are immersed in growth.
Adapty said prices for the weekly plan are also rising with growth. The average weekly subscription prices for the EU and the US increased to $8.3 and $8.1, for 12.2% and 12.5%, respectively. In comparison, monthly and annual planning showed complex growth in different regions. App makers like Spotify and Canva experiment with plans weekly in multiple markets.
Image credit: Adapty
Image credit: Adapty
Image credit: Adapty
The report states that the US is leading by 48.9% in contributions to in-app purchases, while Europe is second in a 24.8% contribution. The US also says it will generate three to four times more revenue than installations from other regions.
In all regions, weekly planning was the biggest contributor of revenue. Most notably, these plans generated 60% of revenue in LATAM and then 53% in MEA. In Europe, weekly plans were the biggest money driver, but had a 38% share.
Image credit: Adapty
There is a downside to rising weekly plans as it will be difficult for apps to keep users in a few weeks.
“What drives growth limits lifetime value. Weekly plans thrive in burst use categories such as utilities and rapid productivity tools. Users pay immediate value but rarely stay. After the 30th day, retention rates drop significantly, with only single-digit percentages remaining after a year.
The report noted that weekly planning increases lifelong value from consumers in categories such as productivity and utility. However, in categories such as Health & Fitness and Photo & Video, annual plans promote value.
Adapty also said that developers offering exams before offering subscriptions saw positive results, and app makers saw an increase in lifetime value of 64% and 58% in the US and Europe, respectively.
Image credit: Adapty
Apple faces regulatory pressure to change its App Store model thanks to both US and EU rulings. However, Adapty believes that it may not have immediate effects.
“We spoke with some of the biggest players in this space. Honestly, there's not yet a major shift to third-party payments. The decline in conversions tends to cancel most benefits. And there's a possibility that Apple will lower the cut to 15-20%.