Developers around the world have embraced the freemium app revenue model on both iOS and Android. New data from App Annie finds that the freemium model is dominating, as free apps generate 69% of iOS app revenues and 75% of Android revenues. GigaOm reports that, “global revenues for freemium apps on iOS have quadrupled over the last 24 months,” and when it comes to Google Play, “worldwide freemium revenues have grown 3.5x in 2012.” Most data suggests that the paid app strategy is on the decline.
Alternatively, a number of developers continue to make money the good old-fashioned way – with a paid download. Just last week, we shared a VentureBeat interview with Corona developer Joe Kauffman, the creator of blockbuster games – The Lost City (with over 3.5M downloads) and The Secret of Grisly Manor. Thanks to his paid titles, Joe’s a self-made millionaire, with remarkable success that flies in the face of App Annie’s findings.
Where do you think the future of app monetization is headed? And, when is a premium app revenue strategy the smarter choice?