According to app economy research firm SensorTower, App Store apps will generate more revenue than games in direct consumer spend by 2024.
The report, 2021-2025 Mobile Market Forecast, forecasts that apps will reach $86 billion and $107 billion in consumer spend by 2024 and 2025 respectively.
This is a significant development since games have long held the leadership position in App Store consumer spending.
Direct consumer spending on the App Store includes paid downloads, in-app purchases, and in-app subscriptions. Importantly, the adoption of and growth in in-app subscriptions is seen as the major driver of why apps are growing faster than and ultimately overtaking games in consumer spend.
One might think that the subscription growth is coming from a few specific categories such as Entertainment with the proliferation of streaming services. The split of in-app purchase vs. subscription revenue within a number of categories tells a different story.
While not all categories have adopted subscriptions as widely, all categories are seeing increased subscription share.
For apps that have not yet made the move to subscriptions, Nami can help you get to market faster. If you're already in market, but looking to optimize subscription revenue or elevate your subscriber experience, we have you covered.
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Get connected with one of our product experts to get started with your journey with Nami today.