Nobody Wants to Pay for Apps Anymore—Except When AI Is Involved

Disclosure: I work at RevenueCat, where we help thousands of apps manage and grow their in-app revenue streams. The insights shared here come from our newly released State of Subscription Apps 2025 report—covering over 75,000 apps and more than $10 billion in revenue across the mobile ecosystem

The subscription app gold rush? It's cooling off fast.

According to the just-released State of Subscription Apps 2025 report from RevenueCat, the average subscription app is fighting an uphill battle to profitability. In a world where user acquisition costs are high, churn is rising, and conversion rates are dipping year over year, many developers are realizing that simply launching a subscription app no longer guarantees meaningful revenue.

But the report also highlights something fascinating: AI-powered apps are quietly outperforming their traditional peers—not in conversion rates, but in revenue per user.

The Subscription Economy’s Shrinking Middle

Let’s start with a sobering stat: the median subscription app makes less than $50/month by its first anniversary. Only about 17% of apps will ever reach $1K/month in revenue, and a tiny sliver—3.5%—hit $10K/month. The top 5% of apps earn around 500x more than the bottom quartile.

The takeaway? Most apps won’t build sustainable businesses through subscriptions alone. Yet, paradoxically, revenue per paying user has never been higher. In other words, the few users who do subscribe are more willing to pay premium prices—but they expect premium experiences.

The AI-Powered Edge

While AI-powered apps aren’t converting more users than traditional apps, they generate significantly more revenue per subscriber. Why? AI helps apps deliver personalized, evolving value, which users are willing to pay more for.

AI apps are increasingly experimenting with hybrid models—combining subscriptions with usage-based credits. Think of an AI writing tool where you get a base subscription but pay extra for advanced features or higher-volume output. This model helps balance the rising compute costs associated with AI workloads, while giving users a path to scale usage incrementally.

It’s All About Day Zero

If there’s one stat every developer should internalize, it’s this: 82% of trial conversions happen on the day users install the app. If an app doesn’t convert on day zero, the odds of winning that user over later are slim. AI apps, in particular, are leveraging this insight by putting their strongest value propositions—and paywalls—right in the onboarding flow.

Developers need to rethink their first-session experience: how quickly do you show value? Do users immediately understand why your app is worth paying for? The best-performing apps—AI or otherwise—are making this moment count.

Hybrid Monetization: The New Normal

The report shows that more apps are moving beyond simple subscriptions. Hybrid monetization models—mixing subscriptions, consumables (one-time purchases), and lifetime deals—are growing fast.

For AI apps, this is especially important. Imagine a fitness app powered by AI personalization that offers credits for additional coaching sessions or a productivity tool charging credits per AI-generated report. It gives high-intent users a way to spend more without locking everyone into the same price tier.

AI is Raising the Bar for Everyone

The bigger implication? AI is changing user expectations across categories. Users now expect smarter onboarding, more personalized features, and evolving value. Apps that don’t deliver may still attract installs but will struggle to retain paying users.

In 2025, building a subscription app isn’t just about offering access—it’s about creating sticky, differentiated value. AI apps are proving that this can be done. The challenge is that users aren’t giving you months to prove your worth anymore. You have hours.

The takeaway: AI isn’t a silver bullet, but when combined with thoughtful onboarding and flexible monetization, it’s proving to be a powerful revenue driver.