The Subscription Death Loop: How App Developers are Surviving—and Trapping—Users in Paywalls

App developers are thriving by charging users monthly fees—despite having fewer people to charge. Global app downloads fell 2.7% in 2025 to 106.9 billion, while spending rose 21.6% to $155.8 billion.

This paradox reveals a fundamental shift in how apps monetize: fewer users are paying more, often trapped in recurring subscription models that outlive their utility.

Non-game app spending jumped 33.9% to $82.6 billion, outpacing mobile game spending ($72.2 billion). Subscription management platforms like RevenueCat ($50M Series C) and app marketing firms like Liftoff Mobile (IPO filing) are profiting from the shift. U.S. app spending hit $55.5 billion (↑18.1%), with non-game spending ($33.6 billion) growing faster than games ($21.9 billion).

Mobile game downloads dropped 8.6% in 2025, while non-game apps saw flat growth. Total app downloads have declined for five consecutive years since pandemic-era peak of 135 billion in 2020.

Yet developers continue to prioritize subscription models, creating what some call a 'death loop'—users paying for underperforming apps they can't easily exit.

"Consumers may not like that nearly every app now has in-app purchases or a subscription model built in, this has offered a more sustainable path for app developers," said an industry analyst.

The tension between user satisfaction and developer sustainability grows as technical debt accumulates from vibe coding—hasty monetization features that degrade user experience.