A report shows that subscription apps are generating little revenue and will therefore change course. New sources of income and price increases must bring about the turnaround.

According to RevenueCat’s State of Subscription App report, most subscription apps generate little to no revenue, and the average subscription price increased 14 percent year over year. The company predicts that subscription apps will leverage new methods to generate revenue.

Low income

One of the report’s most striking findings concerns subscription app revenue. This study shows that the top 5 percent of apps generate 200x the revenue of the bottom quartile after the first year. The average monthly revenue of an app after twelve months would be $50.

It also found that 17.3 percent of apps generated $1,000 in monthly revenue. Once they reach this point, they are more likely to grow. Although there is opportunity for growth, they also estimate that only 3.5 percent of apps will reach $10,000 in revenue. It may not sound surprising that many apps make little money since most apps are started as a side project. However, this may not be music to the developers’ ears.

Price increase and new methods

According to the report, the most common price for a monthly subscription remains $10. The average price, however, rose by 14 percent. The report also contains forecasts for the coming years. The Company expects subscription prices to increase and subscription models to be combined with other revenue generation methods. Additionally, AI also appears in this story where it is used to personalize the user experience.

RevenueCat uses its revenue management tool for almost 30,000 apps. This makes it the largest collection of subscription app developers on one platform after Apple and Google.