RevenueCat's AI copilot and product notes

On the podcast: what the explosion in new apps means for the market, how the top 10% of apps grew 306% while the median barely beat inflation, and why hard paywalls convert 5X better than freemium.

This conversation is focused on RevenueCat’s State of Subscription Apps report.
 
Head to https://www.revenuecat.com/state-of-subscription-apps to download the report.

Top Takeaways:

📊 The app economy is a sorting machine
The top 10% of apps grew 306% while the median grew just 5.3%, and that gap is only widening as AI raises the ceiling for the best-positioned apps.

💰 Hard paywalls crush freemium on conversion, but context matters
Hard paywalls convert five times better than freemium (10.7% vs 2.1% download-to-paid by day 35) with nearly identical year-one retention, but freemium remains the right call when free users drive word of mouth, network effects, or long-term brand scale.

⚡ Day zero is your best shot at converting a user
The first session is when users decide both whether to pay and whether to stay. The majority of trial cancellations happen on day zero, meaning users who don't see value immediately rarely come back to find it.

🤖 AI apps sell, but they don't stick 
AI-powered apps generate 41% more revenue per customer but people churn 30% faster. Apps that solve that retention problem early will own their category; those that don't are just riding a wave of consumer curiosity.

📈 The App Store is experiencing a supply shock
The number of new subscription apps launching each month has grown 7X since 2022, creating a hyper-competitive environment where distribution, not just features, is the primary barrier to success.

About RevenueCat: 

🚀Jacob Eiting, CEO at RevenueCat.

👋LinkedIn

🚀David Barnard, Growth Advocate at RevenueCat.

👋LinkedIn

Follow us on X: 

• David Barnard - @drbarnard
• Jacob Eiting - @jeiting
• RevenueCat - @RevenueCat
• SubClub - @SubClubHQ

Episode Highlights:
[0:27] Unpacking the key findings from the 2026 State of Subscription Apps Report
[2:52] How “vibe coding” and new AI development tools have dramatically lowered the barrier to building apps
[5:42] The emerging “supply shock” in the app economy as cheaper development leads to a flood of new apps competing for the same users
[20:13] Breaking down the SOSA report methodology and why low-traffic apps were excluded from the dataset
[21:57] Why the report separates AI apps from non-AI apps—and how AI apps tend to generate higher revenue per paying user
[23:15] The explosion of new subscription apps, with launches increasing roughly 7× since 2022
[25:33] Why iOS now accounts for about 77% of new subscription app launches, and what that says about platform economics
[30:19] The “power law” reality of the app economy: the top 10% of apps grew 306%, while the median app barely grew
[39:20] A key finding from the report: hard paywalls convert about five times better than freemium models
[45:42] Trial behavior insights: over half of free-trial cancellations happen on day zero
[47:40] The “billion-dollar leak” on Google Play: a large share of cancellations come from involuntary billing failures
[51:21] The AI app paradox: AI apps generate higher revenue per payer but also churn faster than traditional apps
[54:51] Why longer free trials appear to convert better—and why the data may reflect correlation rather than causation
[1:00:54] How AI agents could change how developers analyze subscription business data