Phone-Based Subscriptions May Oust Mobile App Revenues

Successful subscription and membership sites know that it’s best to diversify revenue streams. One of the more lucrative ways for paid content sites has

Successful subscription and membership sites know that it’s best to diversify revenue streams. One of the more lucrative ways for paid content sites has been through mobile apps sold on a subscription basis, such as the crossword app created by The Guardian (contrary to popular belief, The Guardian is not the bastion of free content its PR department wants you to think it is).But recently, Verizon announced plans to bundle separate gaming apps into one package for Android users. Instead of paying a one-time fee of $8 for a single app, users can now pay $5.99 monthly for a variety of games.The service, called GameTanium, could be beneficial for game developers, changing users’ mindsets from one-off downloads to a cable Model. But Verizon may not be the best company to provide such a service — the company has a reputation for not updating apps as frequently as Google Play and the Apple store.In addition, there’s no word yet on Verizon’s cut. Game developers may benefit from bundling their games with others, but if Verizon doesn’t offer significant returns based on number of the subscribers and the amount of use of each game, developers might be better off creating subscription-based apps on their own.

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