Energy Innovation’s recent report tells a very different story. In fact, weekly subscription plans are now the leading revenue generator for iOS apps across a number of countries. This growth highlights a significant trend in consumer behavior toward short-term financial commitments, particularly in categories like productivity and utility.
The report, which reviewed more than 11,000 apps, noted a staggering $1.9 billion in annual revenue coming from weekly subscriptions. These plans influenced almost half (48.9%) of in-app purchase revenue in the United States. In reality, installs in this region bring in three to four times the revenue compared to other markets. In Europe, weekly plans represented 38% of total revenue. Buses accounted for an impressive 60% of total revenue in Latin America and 53% in Middle East & Africa.
In the European Union, consumers are currently paying an additional $8.3 per week (+12.2%). Back in the U.S., prices have increased on average to $8.1 per week, a 12.5% increase. The data indicates that weekly plans lead to increased short term lifetime value. With that potential come challenges.
“Weekly plans thrive in burst-use categories, like utilities or quick productivity tools, where users pay for immediate value but rarely stay,” stated Ariel Michaeli, founder and CEO of Appfigures. After day 30, retention plummets by over half every subsequent month, with single-digit percentages left after a year. That churn curve quietly erodes marketing ROI.”
The report also highlights a notable downside to the popularity of weekly subscriptions. User retention has become increasingly difficult after the initial weeks. Most users don’t stick around past that first month. This has proven to be quite the double-edged sword for app developers hoping to win user engagement over an extended period of time.
Weekly plans are becoming more popular! Additionally, other subscription models, such as monthly, yearly and even lifetime subscriptions, are slowing down in their growth. This change illustrates the evolving market of consumer preferences and how developers need to cater their strategies to stay ahead of the curve.
Vitaly Davydov, CEO of Adapty, commented on the broader implications of subscription models: “We’ve spoken with some of the biggest players in the space, and honestly, there’s no major shift toward third-party payments yet. The drop in conversion tends to cancel out most of the upside.”
The move to weekly subscriptions is starting to pick up steam. Developers are entering a new era of user retention and a changing market landscape, and it will be exciting to watch their tactical decisions come.