The Mobile App Economy: A Shift Towards Subscription-Based Revenue
Hey there, tech enthusiasts! As we wrap up 2025, it’s clear that the mobile app economy is undergoing a significant transformation. Despite a decline in app downloads for the fifth consecutive year, consumer spending has seen a remarkable 21.6% increase, reaching a staggering $155.8 billion. So, what’s behind this unexpected trend?
According to Appfigures’ annual report, international app downloads have decreased by 2.7%, clocking in at 106.9 billion. While this may seem like a setback, app developers and publishers have successfully managed to boost revenue by focusing on in-app purchases and subscriptions. In fact, non-game app spending has seen a whopping 33.9% year-over-year increase, reaching $82.6 billion.
One of the most notable trends is the shift away from mobile games as the primary driver of app economy revenue. While spending on mobile games has increased by 10% year-over-year, reaching $72.2 billion, non-game app spending has also seen a significant surge. This shift towards ongoing revenue streams is creating a more sustainable path for developers and driving growth in the app economy as a whole.
The success of subscription-based models is evident in the funding raised by companies like RevenueCat, Appcharge, and Liftoff Mobile. These companies are helping app developers monetize their apps and improve their revenue streams. As the app economy continues to evolve, it’s clear that focusing on subscription-based models is key to creating a more sustainable future for app businesses.
In the US market, consumer spending has seen a significant increase of 18.1% year-over-year, reaching $55.5 billion. Non-game app spending has seen an even more impressive 26.8% increase, reaching $33.6 billion. Meanwhile, mobile game spending has seen a more modest 6.8% increase, reaching $21.9 billion.
So, what does this mean for app developers and publishers? It’s clear that they must adapt to changing consumer behavior and preferences. By focusing on subscription-based models and ongoing revenue streams, they can create a more sustainable future for their businesses. And, for those interested in staying up-to-date on the latest trends and insights in the app economy, be sure to join us at our upcoming TechCrunch event in San Francisco on October 13-15, 2026!
