In-App Purchases To Overtake Sales From Paid Apps By 2013

paidcontent reporting:

The consumer draw of free apps over paid apps has been well-documented, and so has the rise of in-app payments as a route to making money from those free apps. New research out today predicts that in-app purchases will, in fact, become the most dominant way that app developers will make money in years ahead.

The report, from its IHS Screen Digest division, notes that in-app purchases accounted for about 39 percent of app revenues in 2011, and it predicts that in 2012 that proportion has gone up to 49 percent. By 2015 it will account for 64 percent of all revenues.

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In terms of actual value, IHS says that in-app payments were worth $970 million in 2011, and will be worth $5.6 billion in 2015. (Sound too big to you? Please comment below.)
Update: More on why those revenues will be so big. Ian Fogg, head of mobile for IHS Screen Digest, pointed out to paidContent in an email that the $5.6-billion figure “is driven by the vast numbers of new smartphones that will ship over the next few years. As the number of smart devices is so great, the app market revenues will grow greatly, and hence so will the in-app revenues.” He also noted that many pay-to-download apps also feature in-app purchasing options; that will additionally contribute to the total size of in-app revenues. [original article continues]
http://paidcontent.co.uk/article/419-do-you-buy-this-free-apps-with-in-app-purchases-will-dominate-over-paid