OnDemand WTP Pricing Research

Apple App Store Revenue Surge And The Rise Of Freemium App Pricing | Forbes

Apple deserves no particular credit for the adaptation by the developer community to the freemium model. In fact, developers have used it to solve a problem created for them by Apple, namely app pricing on the iTunes single song model. The 99-cent price of a basic app based on this model rapidly moved to free as developers scrambled to get their app icons on user’s home screens.

Because it is hard to get users to pay for apps directly, most free games, for example, are supported by advertising and in-app purchases. These practices, however, run counter to the high-quality user experience that people expect from Apple products. This conundrum has been particularly vexing for developers who make functional apps. Who wants ads in a time-tracking app you are using to record your billable hours?

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Apple App Store Revenue Surge And The Rise Of Freemium App Pricing.

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