US: In-App Purchases Almost Equal To Download Revenue

According to the latest report from Distimo, many app developers are changing their business model. The report highlights this rise in the popularity of free apps and more specifically of in-app purchases. Between June and December 2010, in-app purchases on iPhone applications increased by 13 percentage points from 36% to 49% of revenues, taking half the market from traditionally paid-for apps.

The mobile app market is evolving towards the freemium model. In less than 6 months, the share of revenues generated by in-app purchases within free apps have more than doubled from 14% to 34% at the expense of the business model based on paid apps only , which rose from 64% to 51% of revenues. Besides, recently Juniper Research predicted that in-game purchases will overtake the traditional pay-per- download model as the primary source of monetising mobile games by 2013.

To download the complete report from Distimo, please click on the following link:

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