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Author: David Macqueen

Publication Date: May 29 2012

Pages: 6

Report Type: Insight, Word

 Application Insights

AppTRAX Insight The Kings of Freemium

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Report Summary:

The rise of the freemium application has been meteoric. When Apple first launched its app store in 2008 developers had two ways to drive revenue – advertising and paid downloads. Over time it became clear that users wanted additional options when choosing how to spend their dollars on applications and Apple moved to enable in-app virtual good sales in mid-2010. Borrowing heavily from the traditions in the Asia Pacific region Apple helped to revolutionize the ways in which apps were consumed and provided developers with popular games a way to monetize users over the long term. In early-2011 Apple introduced subscriptions in another move to expand business models. These business models have been so successful that Amazon has recently launched in-app purchasing and Google announced it had finally enabled in-app subscriptions. Competitors, developers, and users have flocked to these new business models as a way to get high quality apps to a larger number of users. And the competitors have the right idea, according to AppTRAX data obtained in 2011 and 2012.

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