A study performed by App Annie is said to have revealed in a report that Google Play’s revenue in May was not made from paid applications. With over 1.5 million apps from the store platform, it appears that 98% of the revenue was generated from freemium applications.
The freemium applications, which are ‘free’ to download and play, but also provide ‘premium’ content which users can buy with real money, have proven to be the ‘gold mine’ for Google’s store platform. However, the reports also show that the majority of downloads from the store registered in May also indicated a decrease in freemium apps and an increase in free (no strings attached) applications.
App Annie apparently did not state the revenue spike from freemium apps in the given months, however downloads from previous months followed by content purchase later on might explain it since 90% of the revenue during the first quarter reportedly came from games.
The use of premium content inside games has been criticised for some time now, having gamers with more money be given an advantage over gamers who do not wish to invest in such applications. Nevertheless, data gathered by App Annie shows that while the jury decides whether or not freemium apps are unethical or not, the apps are currently deemed as commercially successful.
The study shows that the average application downloaded from Google Play earns roughly $1,150, while Apple’s App Store brings a figure of $4,000, followed by Microsoft’s Windows Phone Store bringing in only $625. Though there is a considerable gap between Apple and Google’s earnings, it is said that Google is quickly gaining some ground in markets from Asia, Russia, Mexico and Brazil.