Can All Apps Be Ad-Free Like Netflix?

A survey revealed that Apple and Samsung users were willing to pay a monthly subscription fee for smartphone applications to stop serving ads.

Primarily, the existence of the so-called free apps mostly relies on the revenue generated by varying advertisements blasted to users.

However, if the situation arises, where ads stopped funding these applications, a McGuffin survey revealed that a large portion of Apple users are willing to pay to keep these applications running — a lot similar to Netflix. But, are people remain ungrudging regarding fees for apps like WhatsApp or YouTube?

People often adore popular applications because of its ingenuity, practicality, or the pure capability of making life more comfortable. Advertisers, on the other hand, sponsor certain applications that get them close and personal with people who they want to get their message across.

As people dwell deeper in how apps stay afloat, it was soon discovered that nothing is entirely free because apps gather personal information into a single comprehensible data box that categorizes users preference and interests.

Although often ridiculed for privacy concerns, selling private information is the primary reason why apps remain to be free and provide users the experience that they seek.

On a whim, the possibility of apps becoming free was speculated and if apps such as YouTube would keep running if it were to be free of ads and replaced by a monthly subscription fee instead.

In a survey of 2,000 Apple and Samsung consumers, it was found that a massive 89% of WhatsApp users would rather pay a monthly subscription if the messaging service were no longer available for free and, at average, would be willing to pay $2.38/month.

Meanwhile, YouTube ranked the highest as app consumers would pay the highest just so they could continue browsing one of the largest collection of videos made by creators from all over the world — with at least 72% saying they were willing to pay $4.20/month.

YouTube is followed by other applications such as Google Maps with 78% willing to $3.48, Google Drive with 79% willing to pay $3.31/month, Facebook with 64% willing to pay $2.92/month, and LinkedIn at 79% with users willing to pay $2.84/month.

Surprisingly, the sixth on the list was FaceTime, where 79% of people said they would pay an average of $2.78/month. It comes to a surprise since it is expected to be a free app since it is an application that comes with purchasing Apple products.

Furthermore, the survey even used the same data to test whether or not paying for applications was a feasible idea, and if it would be enough to keep them running.

Analysts gathered data collected from the latest public records, annual ad-based revenue, and the number of active monthly users.

Then an adjusted projection of monthly users per platform was used, based on what percentage respondents said they would not pay anything for a given app; to relate them with prices consumers were willing to pay by diving that with 12 months for a year to end up with a projected annual income.

“Once we gathered data showing what consumers would pay for various apps, we were eager to compare each company’s current advertising revenue against what they would hypothetically earn if they charged the percentage of users willing to pay the average amount respondents established per app,” McGuffin said.

In the chart above, Reddit saw an increase of up to 10,000% with annual projected revenue of up to $8.3 billion.

Although it’s possible that people can fund applications to let them thrive despite the absence of advertisers, the only consumers willing to pay a monthly due for these applications remains questionable.

Notably, based on the chart above — indicating the most successful and adored apps — the price could well reach at least $20/month, and that’s regardless of all the other applications that people will find tempting to keep on their smartphones.

A privacy-centric and non-exploitative Internet experience may be possible, but it’s merely uncertain that people will follow through to keep apps afloat.

Consumers will still have to wait to see especially catered content on their browser without a catch.

About the Author

Sean Louis Salazar
A communications graduate writing about the latest trends and news!

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