I wanted to pull together something I’ve been musing on during 2017 as we’ve seen the rise of premium subscriptions based on applications.
There’s a stigma around this first movement of premium subscriptions and something that I think really interests me. I wanted to explore from an app and a user perspective about how premium is affecting the market.
Here’s the full article: https://blog.newtonhq.com/the-awkward-conversation-of-going-premium-e594a29b0fea
Here’s the opening segment:
There’s a stigma around paying for applications.
For years, funded start-ups ruled the App Stores with their well-crafted resources layered with freemium for all, in an effort to retain the masses.
Naturally over time, our minds have become attuned to this model.
In the last 24 months, this mindset has shifted with the most popular applications being forced to head towards a paid model to help stabilise their development efforts and growth.
Naturally over time, our minds have become attuned to freemium.
The new default experience has changed the way we think about apps and tools but helped us to understand the sustainability of this ecosystem.
So how did we arrive here?
The Rise of Premium
It all started with the rise of the App Store.
Steve Jobs announced the iOS App Store back in 2008. One of the momentous launches of Apple, the store became a hub of creativity and talent, with start-ups and businesses flocking for attention on the fresh new marketplace.
This new marketplace introduced a new world for developers to craft applications and sell them to the world. The most popular apps sold between $0.99 and $9.99 with Apple cutting out 30% of the fee to cover the costs of hosting the applications on their platform.
This revolution brought the first wave of one-off fee applications.