In-App Purchases Racked Up $970 Million in 2011

A report from research firm IHS revealed that app users spent $970 million on in-app purchases in 2011, accounting for 39 percent of the market. The firm predicts that in-app purchases could rise to $5.6 billion and 64 percent of the market by 2015.

"In 2012, it will become increasingly difficult for app stores and developers to justify charging an upfront fee for their products when faced with competition from a plethora of free content," said IHS analyst Jack Kent. "Instead, the apps industry must fully embrace the freemium model and monetize content through in-app purchases."

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