The RevenueCat report reveals that the subscription app landscape is becoming increasingly challenging with high user acquisition costs, rising churn rates, and declining conversion rates. Most apps struggle to achieve meaningful revenue, with only a small fraction reaching significant monthly earnings. However, AI-powered applications show remarkable performance in revenue generation per user, indicating that while conversion rates remain low, the quality of subscribers' willingness to pay is higher. As a response, many AI apps are adopting hybrid revenue models that combine subscriptions with usage-based pricing to enhance user experience.
Most apps won't build sustainable businesses through subscriptions alone. Yet, paradoxically, revenue per paying user has never been higher.
AI helps apps deliver personalized, evolving value, which users are willing to pay more for.
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