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Research Shows Android Users prefer “freemium” apps, As 98% of Google Play Revenue comes from In-App Purchases

December 30, 2013 - Written By Alexander Maxham

We’ve heard many times that Android users are “cheap”, since most of us don’t pay for apps or the full version of an App. I don’t know about the rest of you out there, but if I use an app and I like it, I will usually support the developer by buying the app. Sine they have to put food on their table just like we do. There’s some new research coming out of Distimo today, which is telling us we’re more likely to buy stuff from In-App Purchases rather than pay for an upfront.

The research, in the graph above shows that about 98% of revenue from the Google Play store was from Freemium apps. While the other two percentage points came from paid apps and paid apps with in-app purchases. Those are the ones I hate the most. You buy an app, that has in-app purchases, why? The research also shows we spend a lot more on games than any other category. Which is probably largely to do with Candy Crush. Games is responsible for nearly 90% of the Freemium model. Which also makes sense since there are many games that are now freemium compared to apps.

We should also note that these figures are worldwide. And not just the US. But if you break it down by Country, the percentages are still pretty impressive. With emerging markets in Asia leading the way. South Korea is seeing an uptick of 759% since last year. This leads to many of the top grossing apps in the report being ones that we’ve never heard of in the US. Surprising the US is right in the middle as far as the change in revenue from Freemium apps in the past year. Sitting at 81%. With China, Japan, Russia, Germany and France ahead of it.

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How many of you spend more money on in-app purchases than apps? Let us know in the comments below.