OPENAI’S GPT-4O LAUNCH TRIGGERS RECORD SURGE IN MOBILE APP SUBSCRIPTIONS
OpenAI’s decision to offer its most powerful AI model yet, GPT-4o, for free on the web while restricting access on its mobile app has proven to be a strategic success. This move has resulted in a substantial surge in mobile app subscriptions, leading to the company’s highest-ever revenue spike on mobile devices.
Launch and Capabilities of GPT-4o
Released last Monday, GPT-4o is an advanced AI model capable of handling text, speech, and video with real-time responses and a range of emotive voice options. These enhancements significantly boost the model’s capabilities compared to its predecessors, making it highly appealing to users.
Revenue Surge and Subscription Growth
According to app intelligence firm Appfigures, the launch of GPT-4o has driven a notable increase in users opting for OpenAI’s paid subscription services. While GPT-4o is accessible for free on the web, mobile users must subscribe to ChatGPT Plus at $19.99 per month to use the new model. This pricing strategy has effectively spurred a rise in subscription demand on mobile platforms.
Appfigures’ data shows that the ChatGPT mobile app experienced a 22% revenue increase on the day of the GPT-4o launch, with revenue continuing to climb in the following days. By Tuesday, net revenue reached $900,000, nearly doubling the app’s daily average of $491,000. These net revenue figures account for commission deductions by Apple and Google.
Record-Breaking Revenue and Market Analysis
The recent surge has surpassed the app’s previous highest revenue spike in April, marking a new achievement for OpenAI. From Monday to Friday last week, the ChatGPT mobile app generated $4.2 million in net revenue across the App Store and Google Play, the largest weekly increase recorded.
The U.S. market significantly contributed to this growth, accounting for $1.8 million of the total revenue. Other top-performing countries included Germany ($282K), the U.K. ($212K), Japan ($210K), France ($147K), Canada ($134K), Korea ($123K), Brazil ($117K), Australia ($102K), and Turkey ($89K). Notably, Apple’s App Store was responsible for 81% of the new revenue.
Future Trends and Consumer Demand
The trend shows no signs of slowing down, with indications that the revenue increase may continue or even rise further. This sustained interest highlights strong consumer demand for the latest AI advancements on mobile platforms, even at a higher cost compared to popular streaming services.
In summary, OpenAI’s strategic move to offer GPT-4o for free on the web while monetizing it on mobile platforms has resulted in a significant boost in mobile app subscriptions and revenue, demonstrating a successful approach to leveraging AI technology in the market.
Source: Techeconomy
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