98pc of Google Play revenue through freemium apps, says report

24 Jun 2014

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With the build-up to Google’s I/O developer conference this week well under way, App Annie’s latest report has shown the growth of freemium apps, as 98pc of Google Play’s revenue now comes from this model.

The go-to store for every Android device continues to grow rapidly as the developing markets begin to acquire cheaper smartphones running the Android operating system and have in the space of six months seen a further 200,000 apps launched on the store, after last year’s record of a total of 800,000.

However, while there is still debate regarding which financial model suits the app development business best – whether it be premium (paid) or freemium (free with in-app purchases) – it would appear that the latter is by-far the most profitable given App Annie’s figures.

It would also appear that games continue to be the dominant source of this revenue, even more-so than 2013, as Google Play’s percentage of revenue from games grew from 80pc to 90pc.

While developing nations in Asia are contributing to Google Play’s growing revenues, the region’s powerhouses of Japan and South Korea are the first and third biggest purchasers of apps while the US has moved up one spot to second.

The app development sector remains in contention with reports earlier this year stating that 98pc of apps created by 2018 will be considered financial failures, however the popularity of the freemium model appears to show signs of optimism.

Apps icon image via Shutterstock

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Colm Gorey is a journalist with Siliconrepublic.com

editorial@siliconrepublic.com