Freemium or Paid? The Impact of Firm Experience and App Data on the Revenue Streams of Mobile Gaming Apps

Abstract

Mobile gaming accounts for approximately 40% of all revenues generated by apps. Although they thus constitute the primary driver of revenues, extant literature seldom examines the revenue models of gaming apps. In response, this study investigates if the mobile gaming revenue model influences revenues and whether other factors might explain higher or lower revenues for gaming apps, especially technological and market experience. The results reveal no influence of the revenue model on revenues, which instead depend on the users, their social recommendations, and the prices of in-game extras or of the app. Publishers can influence revenue generation positively or negatively though, by using their market experience, e.g. a previously published brand. Technological Experience has no influence so far.

Keywords: Mobile Gaming, Revenue Models, Freemium, App Data, Market Experience, Technological Experience