• Subscription Based Mobile Apps – How Do Mobile Companies Do It?

    Subscriptions based mobile apps have been the proverbial talk of the town for quite some time now. But what makes these types of apps special? What separates them from the plethora of other apps available? Here is a look at what makes Subscription based apps so popular today!

    Subscription Based Mobile Apps

    • In the simplest of terms, a subscription based mobile app allows its users to use the app after the payment of a monthly subscription fee.
    • Mostly, news related websites, online magazines and comics, are some types of subscription based mobile apps. Moreover, currently in the online market, there are some gaming apps that are available on subscription basis. Certain games launched by Big Fish Games fall in this category.
    • By using the subscription feature on its apps, companies can introduces fees on any product they feature on mobile markets.

    How do the mobile companies deal with subscription based mobile apps?

    There are technically two ways in which current mobile companies are dealing with their apps markets. They either allow subscription based apps or they don’t.

    • Initially, mobile companies launched the basic subscription on apps feature using which app developers sold their subscription from within the service provider’s market. Apple started allowing subscription based mobile apps in 2011.
    • In 2012, Google upped its playing field by allowing subscription based mobile apps on its Android market (now known as Google Play) for even games.
    • Using this feature, apps developers can charge monthly or annual (or any other scheme) subscriptions on their products from their users. They can also offer bundle offers and other exclusive features when it comes to charging money for using certain apps.
    • Subscriptions are most charged on apps that allow user to download content and use it even when offline. They most include pictures, news features, statistics and data and even games.
    • It also means that now the subscription plans of users can get automatically renewed within the app.
    • Gaming companies that sell mobile games are said to be the biggest beneficiaries from this process. Now, they can charge subscriptions at various levels of each game. They can also use the bundle subscription payment feature for all games provided by them.
    • By using the subscription based mobile apps feature, mobile companies get to keep a percentage of the earning of the developers as profit. They generally keep about 30% of the total (the figure is true for both Google and Apple). However, if the user of the app comes to the app on the online store via its publisher, then the mobile company gets no share in that profit.
    • Mobile companies mostlyallow app developers to use the subscription feature on any product that they want. Moreover, no special registration is required for availing it. They can also advertise about their various subscriptions related features on their websites in order to attract more customers.
    • Mobile companies also provide a secure and safe process for billing using which, customers can easily pay for their subscriptions and also not reveal any sensitive financial or personal information that can harm them in any way in the future. In fact, they also offer various ‘security’ related measures to app developers so that their sensitive information is not made public and their copyright remains intact.
    • Finally, subscription based apps can help mobile companies earn more in terms of revenue.

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