Convenience Drives Mobile Subscription Sales, Particularly for Streaming Video On-Demand

In a July 2014 poll, 76% of smartphone owners and 55% of tablet owners have downloaded apps. Of those, 43% of mobile users paid

In a July 2014 poll, 76% of smartphone owners and 55% of tablet owners have downloaded apps. Of those, 43% of mobile users paid a one-time cost for an app, according to a Harris Poll conducted for Branchfire, proving that consumers will pay for content delivered in convenient formats.The survey reported that 70% of respondents said they have downloaded 10 or more apps (free and paid), 43% downloaded 20 or more apps, and 20% downloaded 30 or more apps. But more importantly, the survey showed that smartphone and tablet users are willing to pay a monthly subscription fee for content in six different categories.Streaming video on-demand had the highest percentage of subscribers of all downloads at 57%, followed by games at 30%, streaming music at 27%, news and magazines at 25% and productivity apps at 11%. (Note: With the totals adding up to more than 100%, we are making the assumption that some users have more than one subscription.)Breaking it down by age, respondents aged 18 to 34 had slightly higher percentages in the top three subscription categories: 59% (vs. 57% for all users) for streaming TV and movies (e.g., Netflix), 34% (vs. 30% for all users) for games (e.g. Angry Birds), and 31% (vs. 27% for all users) for streaming music (e.g., Spotify, Pandora). Companies like Netflix and Scribd have made the subscription model profitable, despite new additions to the app market.Straying from traditional business models and the idea that everything online should be free, the mobile economy continues to prove it can generate revenue. Hybrid business models offering a mix of free and paid content can thrive, but subscription-only based services are also in demand. Consumers want what they want when and where they want it – even if they have to pay for it.  

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