Report shows 17.2% apps earn $1000/month, with 3.5% crossing $10,000; Health apps perform best

According to the report by RevenueCat, only the top 5% of the apps generate 200 times the revenue of other apps while the other apps generate about $50 of the monthly revenue. The report named “State of Subscription Apps” shows data from over 29,000 apps from 18,000 developers and says that these apps make $6.7 billion total revenue with 290 million subscriptions.

According to the data, 17.2% of the apps only reach 1000 USD in a month in revenue and when they cross this monetization, the chances of them generating more revenue increases. 59% of the apps that reach 1000 USD also reach 2500 USD revenue. Similarly, 60% of the apps that reach $2500 get to reach $5000 revenue. But only 3.5% of the apps that reach $5000 can reach $10,000 monthly revenue. The success of apps also depends on the category the apps belong to.

Health and Fitness apps monetize more after a year of their development and perform better than apps from other categories. The apps belonging to Travel and Productivity categories generate the least revenues with 5% of the apps making less than $10,000 a month. RevenueCat also found out that the monthly subscriptions for most apps start from $10 a month but the median amount of these subscriptions have increased by 14% and have gone from $7.05 to $8.01. The yearly average price of these subscriptions have decreased a bit with 1%, going from $32.94 to $34.53.
The report also found that apps based in North America are 4 times more likely to generate revenue than other apps. Apps in Japan and South Korea generate more revenue on Android than IOS. Many users are also canceling their subscriptions from the apps as there was a 14% drop in the monthly subscribers retained after 12 months. But data also shows that 10% of these users will subscribe back in 12 months in app categories like Media and Entertainment.

The CEO of RevenueCat, Jacob Eiting, says that many apps are raising their prices and that’s the reason many users are unsubscribing. The report also talks about predictions that say that many apps are going to adopt a no-trial subscription. Many apps are also set to use AI that will make the apps more user friendly and customize the apps according to the preference of the users.

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