Subscription apps see 400x revenue gap between top and bottom performers

The subscription app market is more competitive than ever, with the gap between the most successful apps and struggling ones widening to 400x in revenue, according to RevenueCat’s State of Subscription Apps 2025 report. While the top 5% of newly launched apps earn $8,888 in their first year, the bottom 25% make just $19, highlighting the critical role of pricing, retention, and monetization strategies in determining success.

AI Apps Lead in Revenue, But Differentiation is Key

AI-powered apps are among the highest earners, generating an average revenue per install (RPI) of $0.63 after 60 days—double the overall median of $0.31. Only Health & Fitness apps match this level of monetization, signaling the strong demand for AI-driven features. However, the report warns that simply adding AI does not guarantee success; apps that differentiate with unique features and strong engagement strategies are the ones capturing the most revenue.

Hybrid Monetization Models Gain Traction

The days of relying solely on subscriptions are fading, as 35% of apps now mix subscriptions with consumables or lifetime purchases. This trend is most evident in Gaming (61.7%) and Social & Lifestyle (39.4%) categories, where developers are maximizing revenue by offering a combination of premium content, in-app purchases, and flexible payment options.

Retention Challenges: Low-Cost Annual Plans Outperform Monthly Subscriptions

Retention remains a major challenge for subscription apps. The report finds that low-cost annual plans retain up to 36% of users after a year, whereas high-priced monthly subscriptions struggle with just 6.7% retention. Additionally, 30% of annual subscribers cancel within the first month, making early engagement and retention strategies more crucial than ever.

Regional and Platform Differences Impact Subscription Success

Subscription revenue varies significantly by platform and region. The App Store outperforms Google Play in revenue per install, while North America and Western Europe lead in average subscription pricing. Meanwhile, Latin America and Southeast Asia see stronger adoption of lower-cost weekly plans, reflecting different spending behaviors and price sensitivities.

As the subscription economy evolves, the report highlights a growing divide between top-performing apps and those struggling to retain users. Success in 2025 will depend on innovative monetization, strong onboarding, and retention-focused pricing strategies—factors that will separate the industry’s winners from those left behind.