Free Beats Paid in Generating Revenue on Apple’s App Store [STATS]

Here’s something that might seem counter-intuitive. Free iPhone and iPod touch games generate more revenue than their paid counterparts on Apple’s 15 billion download-strongApp Store.

The new finding comes from mobile analytics company Flurry. It analyzed the revenue generated by the top 100 grossing games on the App Store in January and June.

As it turns out, freemium, or free-to-play games generated 65% of all revenue from the top 100 grossing games in June. The majority stake represents a near complete flip-flop from January according to Flurry’s data, when 61% of revenue from the top 100 was coming in from premium, for-charge games.

It would seem that mobile application developers would be best served by adopting the freemium model, which hooks users with a free download and includes ads or in-app upgrades to generate revenue. Still, the data does not support a definitive conclusion on whether the revenue reversal represents a shift in consumer purchase preferences or a marked change in how developers are monetizing their applications.

Flurry tracks more than 90,000 apps on the App Store; it claims to be able to measure revenue generated per ranked position in the App Store top grossing category.


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