The State of Apps
a16z Show
Evolving Business Models in Subscription Apps
This chapter explores the changing dynamics of subscription apps, particularly their shift towards B2B strategies and partnerships with insurers. It also examines the incorporation of gamification to reward users for healthy activities and the evolving pricing strategies in the market.
A few weeks ago, Apple released a stunning statistic: they’ve paid developers over $320B — yes, billion! — since the launch of the App Store in 2008, highlighting the cast opportunity in the marketplace.
And around the same time, a16z Consumer Partner, Olivia Moore, compiled a list of the top apps across the US app store throughout 2022.
In this episode, you’ll get to hear which apps made it to the top and what they have in common. Hint: the big winners were in social, but perhaps a new wave of social apps!
We also get the scoop on what it really takes to not just hit #1, but stay there. This episode highlights numerous surprising examples ranging from a new-age Beanie Baby app, a viral talking dog, an app from 2012 that finally broke the top 10, and the Chinese app that’s been at #1 for a majority of 2023, and it’s not TIkTok!
There are endless learnings about how new founders can take advantage of these opportunities.
Timestamps:
- 01:51 - Top apps in 2022
- 03:32 - A new era of social?
- 07:22 - Hitting #1
- 09:30 - Staying on top
- 11:20 - Building a sticky product
- 13:46 - Growing an app in 2023
- 15:35 - User-generated growth
- 17:48 - 2022 category winners
- 20:39 - Anonymous social
- 22:24 - Early monetization
- 26:30 - Monetization trends
- 31:07 - Leveraging platform shifts
- 35:26 - Surprising hits
- 37:50 - Looking toward 2023
- 39:38 - Invisible AI products
- 41:46 - Limiting virality
- 45:13 - Vertical social networks
- 48:37 - When digital goes physical
- 51:44 - TikTok growth
- 53:27 - Geographic trends
- 56:18 - A decade old app
- 1:00:25 - App challenge
Resources:
- Follow Olivia on Twitter: https://twitter.com/omooretweets
- Olivia's 2022 analysis: https://twitter.com/omooretweets/status/1605983056682045440
- Olivia's 2021 analysis: https://twitter.com/omooretweets/status/1483482099562602500
- Justine’s Boating app commentary: https://twitter.com/venturetwins/status/1616121691830390784
- Olivia’s Tinder subscription commentary: https://twitter.com/omooretweets/status/1616480480546942976
Apps mentioned:
- BeReal: https://apps.apple.com/us/app/bereal-your-friends-for-real/id1459645446
- TikTok: https://apps.apple.com/us/app/tiktok/id835599320
- Gas App: https://apps.apple.com/us/app/gas/id1641791746
- Talking Ben the Dog: https://apps.apple.com/us/app/talking-ben-the-dog/id416345319
- Argo Boating Navigation: https://apps.apple.com/us/app/argo-boating-navigation/id1463869636
- NoteIt: https://apps.apple.com/us/app/noteit-widget-get-it-now/id1570369625
- Locket Widget: https://apps.apple.com/us/app/locket-widget/id1600525061
- LiveIn: https://apps.apple.com/us/app/livein-share-your-moment/id1606780589
- Slay: https://apps.apple.com/de/app/slay-komplimente-umfragen/id1645858841
- Lensa AI: https://apps.apple.com/us/app/lensa-photo-editing/id1436732536
- Starlink: https://apps.apple.com/us/app/starlink/id1537177988
- NOAA Weather: https://apps.apple.com/us/app/noaa-weather/id436760574
- Stardust Period Tracker: https://apps.apple.com/us/app/stardust-period-tracker/id1495829322
- Temu: https://apps.apple.com/us/app/temu-team-up-price-down/id1641486558
- SquadApp: https://apps.apple.com/us/app/squadapp-collection-database/id1623120952
- TravelBoast: https://apps.apple.com/us/app/travelboast-my-journey-routes/id1476504378
- Subway Surfers: https://apps.apple.com/us/app/subway-surfers/id512939461
Stay Updated:
- Find us on Twitter: https://twitter.com/a16z
- Find us on LinkedIn: https://www.linkedin.com/company/a16z
- Subscribe on your favorite podcast app: https://a16z.simplecast.com/
- Follow our host: https://twitter.com/stephsmithio
Please note that the content here is for informational purposes only; should NOT be taken as legal, business, tax, or investment advice or be used to evaluate any investment or security; and is not directed at any investors or potential investors in any a16z fund. For more details please see a16z.com/disclosures.
Stay Updated:
Find a16z on X
Find a16z on LinkedIn
Listen to the a16z Show on Spotify
Listen to the a16z Show on Apple Podcasts
Follow our host: https://twitter.com/eriktorenberg
Please note that the content here is for informational purposes only; should NOT be taken as legal, business, tax, or investment advice or be used to evaluate any investment or security; and is not directed at any investors or potential investors in any a16z fund. a16z and its affiliates may maintain investments in the companies discussed. For more details please see a16z.com/disclosures.
Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.
The AI-powered Podcast Player
