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App Subscription Revenue

  • 31-Jan-2017

The secret sauce for a successful mobile game?

Yes, the buzz words for 2017 are ‘App Subscription’. According to App Annie, Netflix and its subscription-based content model will become the standard method of monetization for mobile games providers this year.

In fact, App Annie predicts that by the end of 2017 there will be a new top 50 grossing games, of which more than 50 percent of the revenue stream will come from App subscriptions.

This isn’t just another fad or marketing hype, consumers are wising up to the fact that it makes sense to opt-in to pay a subscription to access regular and updated digital media content, instead of paying for one-off downloads.

The model is working not only for the likes of Netflix and Spotify, it's also expanding into health, fitness and lifestyle apps which are becoming more subscription-based.

Subs are coming to gaming!

Ever since last summer when Apple announced a way to facilitate subscription revenue for game developers and companies, some developers and studios have introduced a subscription component. Mobile entertainment company Seriously (and their Best Fiends Forever app), Ubisoft’s Just Dance, and Smule (the social music-making developer for iOS, Android, and Kindle Fire) have all jumped on the subscription bandwagon and are reaping the rewards.

Our Link2Win CEO John Reid comments; “During 2017 we are expecting gaming producers and developers to bring in new mechanics with episodic content that delivers better value for consumers, and which is ideal for subscriptions.”

Lotto subscriptions

With digital lottery forecast to explode in 2017, could these new forms of subscription based services benefit lottery companies which have found entry too high to date? The answer is a resounding yes, the main reason being that consumers don’t want to miss out on the chance of hitting the jackpot.

Subscription fees can open up a whole range of player experiences, as well as improved revenue share with the app stores, customer loyalty triggers, and revenue predictability.

We hope this insight into another part of the industry is provoking as much discussion as it is in ours.