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Freemium App Model Continues to Gain Traction

About a third of apps rely on in-app purchases for revenue.


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A new survey by Simon-Kucher & Partners analyzed payment models for the mobile development industry. They found that approximately 40 percent of apps utilize paid downloads and a third use the "freemium" model--free downloads with in-app purchases available. The result was somewhat surprising as the firm had expected the freemium percentage to be closer to 15 percent.

The firm noted that not all apps are well suited to the freemium model, however. "While it's perfect for game apps, it makes not much sense for an app such as flashlight. There's no added value to be gained there," explained Simon-Kucher's Annette Ehrhardt.

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