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AppTRAX Insight The Kings of Freemium
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.