If you look at revenue being earned by mobile apps, the "freemium" approach seems to be working. In fact, actual revenue earned by app providers leans heavily in "in direct" revenue earned from users paying for content or products supplied by "free" apps, compared to direct revenue earned by selling those apps to use.
Over the last two years, global revenues for freemium apps on iOS have more than quadrupled. In 2012, worldwide freemium revenues on Google Play have grown 3.5 times, according to App Annie.
Those revenue growth figures do not tell the full story, unless you compare the growth and absolute revenue figures with the revenue created by apps whose revenue model is "you buy the app."
Saturday, October 27, 2012
Freemium Works: Leads App Store Revenue Sources
Gary Kim has been a digital infra analyst and journalist for more than 30 years, covering the business impact of technology, pre- and post-internet. He sees a similar evolution coming with AI. General-purpose technologies do not come along very often, but when they do, they change life, economies and industries.
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