Sub Club by RevenueCat · 2025-03-17

The 2025 State of Subscription Apps Report

David Barnard and RevenueCat CEO Jacob Eiting walk through RevenueCat's State of Subscription Apps 2025 report: AI apps convert like others but earn more per user; iOS has more payers but Android payers have similar realized LTV; React Native apps monetize fine; year-one retention keeps sliding; 5% of apps pass ~$9K/month a year after launch; hybrid monetization (subscriptions + consumables/credits) is spreading; 80%+ of trial starts happen on day one; annual cancellations cluster in month one; lower prices retain better, illustrated by David's $40/year weather app.

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6 tactics

A weather app · B2C · host's own app

Charge $40 a year when most rivals charge $20-25

~40% year-one retention; host now thinks a lower price would have done better

Priced the annual subscription at $40/year versus $20-25 for most weather apps, reasoning that a higher price would make planned ad spend easier to pay back. Much of the year's traffic came from press, so price experiments were hard to read; host concludes early apps should price lower to build retentive cohorts.

Mixedpricingpaid-social

Sub Club by RevenueCat · 2025-03-17

A subscription app · B2C · minisode guest's app

Drop prices far lower in Brazil, where ads are very cheap

Finally made ad spend in Brazil work; no numbers

Because ad rates on Android and in developing countries like Brazil are so low, the app dramatically lowered its prices there, even below what you would expect, and paired that with paid ads. Cheap ads on one side and cheap prices on the other made return on ad spend work.

Workedpricingpaid-social

Sub Club by RevenueCat · 2025-03-17

Practitioner pattern · David Barnard (Works at RevenueCat, which publishes the report)

Put the paywall in onboarding, since most trials start on day one

Over 80% of trial starts happen the first day across RevenueCat apps

Show the trial paywall during the first-session onboarding rather than waiting for users to experience the product freemium-style. Across RevenueCat apps over 80% of trial starts happen on the first day the app is opened, with the remaining ~20% trickling in on every later day. Users who decline may not convert, but it may be your only chance.

Workedpaywallonboarding

Sub Club by RevenueCat · 2025-03-17

Practitioner pattern · David Barnard (Works at RevenueCat, which publishes the report)

Include credits in the subscription and let heavy users buy more

Spreading, e.g. 13% of photo/video apps; too few included credits drew angry reviews

For AI apps where a few users drive outsized backend costs, the subscription includes a set number of credits and users who run out can buy more as consumables, instead of trying to price the subscription for the heaviest users. Keep the included amount fair: one app charging a fairly expensive subscription that included only ~3 image generations was slammed in reviews as a rug-pull. At $20/month users must feel they got $20 of value before paying for consumables.

Mixedpricingupsell-expansion

Sub Club by RevenueCat · 2025-03-17

Practitioner pattern · David Barnard (Works at RevenueCat, which publishes the report)

On Android, let people buy one feature or one piece of content

Google reports much better Android monetization with hybrid models; no numbers given

Instead of a single subscription price point, which throws away everyone who won't pay that price, add lower-priced options: buy a single feature, or in content apps buy a single piece of content. Relayed from Tammy at Google (minisode), whose data shows better Android monetization with hybrid monetization; ads can monetize the non-payers further.

Workedpricingupsell-expansion

Sub Club by RevenueCat · 2025-03-17

MacroFactor · B2C · food logging app

Build the app with influencers who already have a following in the niche

Had a built-in community to market to; audiences tap out fairly quickly

The app was built by a group of fitness influencers, giving it a built-in community to market to from launch. Host notes such influencer-led launches usually plateau once the audience is tapped out, after which paid ads and product differentiation are needed.

Workedinfluencerfounder-brand

Sub Club by RevenueCat · 2025-03-17

Numbers mentioned

Who	Metric	Value	Context	When
Host's own weather app	price	USD 40/year	Annual subscription price	36:38
marketTypical weather app annual subscription price	price	USD 20–25/year approximate		36:38
Host's own weather app	retention	40%/year projection	Year-one retained subscribers (60% churn); host says it is above median	36:38
Ladder	price	USD 30/month approximate	Subscription price; described as one of the more expensive apps with incredible retention	41:13
Monarch Money	team size	100 people approximate		25:13
Guest's old Windows app	revenue	USD 1,000/month approximate	Low-maintenance Windows app, sustained for years	25:01
aggregateAll apps on RevenueCat (State of Subscription Apps 2025)	share	80% approximate	Share of trial starts that happen on the day the user first opens the app (over 80%)	31:09
aggregateApps on RevenueCat, one year after launch	share	5% approximate	Share of apps making $9,000+/month in revenue one year after launch (1 in 20)	22:47
aggregatePhoto & video apps on RevenueCat	share	13% approximate	Share of photo & video apps selling subscriptions plus consumables (likely AI/photo credits)	28:36
aggregateAnnual subscriptions on RevenueCat, shopping category	churn	40% approximate	Share of annual-plan cancellations (final auto-renew turn-off) happening in month one; shopping is the highest category, over 40%	32:36
aggregateAnnual subscriptions on RevenueCat, all categories	churn	27% estimate	Share of annual-plan customers who cancel in the first month; the last month is the next most common	34:19
aggregateAnnual subscriptions on RevenueCat, most categories	churn	10–12% approximate	Size of the last-month cancellation spike for most categories	32:36
aggregateSubscription apps on RevenueCat, year-one retention 2021-2024	retention	30–49% approximate	Year-one subscriber retention, trending down each year	20:54
aggregateGoogle Play churn survey responses collected by RevenueCat	share	10% approximate	Churned subscribers citing a better/competing app (under 10%); cost and not enough usage dominate	35:57
aggregateMonthly subscriptions on RevenueCat	share	40–60% approximate	Active renewal rate: share of renewing monthly subscribers who used the app in that month (weekly is lowest, annual near 100%)	43:19
benchmarkShare of people who will pay for any given app	conversion rate	single digit percentages estimate	Rough share of people with the income and willingness to buy an app, regardless of content	2:30