According to a recent study conducted by Branchfire, an estimated 49% of app users would be willing to pay a monthly subscription for full featured access to an application that they enjoy using. The research results were quite surprising. Not only did nearly half of Smartphone users admit that they wouldn’t mind paying for an app service, but approximately 48% of the individuals polled stated that a price range under $25 would be ideal.
The Chicago-based mobile software firm, Branchfire conducted their research study through Harris Poll via its QuickQuery omnibus service. They surveyed 2,042 adults (age 18 or older) between the periods of July 8 to July 10, 2014. Out of individuals polled 1,298 were actual Smartphone or tablet device owners.
34% of App Users Would Pay Monthly for Games
When the participants (aged 18-34 years old) who commented that they’d pay for a monthly subscription were asked which app categories were worthy of this type of service, 59% stated streaming TV and movie apps and 34% said games. As far as pricing goes, 31% of those surveyed were willing to pay less than $10 and only 2% were willing to pay over $25.
Due to their larger sized screens tablet based subscription apps are performing slightly higher than traditional Smartphones. However with major companies like Samsung, Sony, and Apple releasing bigger and better models like the Galaxy Note 4 or iPhone 6 Plus, it will be fascinating to see what impact these improvements will have later down the line on subscription-based games and movie streaming applications.
“Ten dollars a month is the sweet spot for subscribers,” Branchfire’s report concluded. “With 37 percent of smartphone/tablet owners already subscribing to monthly subscription-based apps, this points to a small rate (just 12 percent) of growth to penetrate.”
Although the report of potential subscribers is encouraging to most developers, it still boils down to quality and providing an entertaining experience for your users.
You can view the full report at the Branchfire website.