Google Play revenue is almost all from Freemium apps
A new report from App Annie has revealed that almost all the revenue from Google Play comes from Freemium apps. The site also stated that the vast majority of apps bought from the store are games, at 40%, and that the platform has seen huge growth in the last 6 months in the number of downloads made. While it is clear that Android users prefer to not have to pay for their games and apps on Google Play, they are willing to spend big on in-game content. The 18-page report also details the leading markets for in-app purchases, with Japan, the US and South Korea leading the way.
Freemium games have jumped in popularity over the last few years. Games like Candy Crush and Farmville have shown how profitable those types of titles can be and it has led to an explosion in the number of freemium apps available on Google Play. Freemium games are those that offer users the core game experience for free but lock other features and content behind paywalls. It was reported in April that Google Play was already ahead of the App Store in terms of number of downloads. The Android store had 45% more downloads the Apple’s in the first quarter of 2014. However, it was also clear that the App Store was way ahead of Google Play in terms of revenue, with the iOS service bringing in 85% more money.
The report from App Annie in April pulled data from nearly every market both stores are available in but did not include figures from Amazon’s own Appstore, which makes up a significant amount of downloads, and revenue for Android devices. The report does suggest that while developers can make more money from having their apps on the App Store, Google is slowly closing the revenue gap.