Kif Leswing reports for Business Insider on a meeting Apple held with select app developers last year where the subscription model was pushed:
An Apple representative said at the meeting that paid apps represent 15% of total app sales and is on the decline, according to a person who was there who did not want to be identified to maintain their relationship with Apple.
The message was clear: successful apps now focus on getting regular engagement from their users, not one-time sales. For developers, that meant embracing the subscription model.
If you focus on paid apps, instead of subscriptions, Apple warned, your business will eventually hit a cap.
This report comes hot on the heels of Apple’s recent quarterly earnings report, during which Tim Cook shared, “Paid subscriptions from Apple and third parties have now surpassed 300 million, an increase of more than 60 percent in the past year alone.”
That increase is fairly staggering to consider. Two years ago when Apple opened up subscriptions to all app types, many users and developers feared the potential for subscription fatigue. It looks like that hasn’t prevented significant growth from happening – at least for now. I’ll be curious to see if growth like this, and a further shift toward subscriptions over paid apps, is sustainable in the long-term.