Hybrid app monetization — combining subscriptions with in-app purchases, usage-based pricing, and ads — is becoming the default model for subscription apps in 2026. In this session, app growth experts David Barnard and Thomas Petit explain why all-you-can-eat subscription pricing is breaking down and what to do about it.
AI features introduce real, variable costs that scale with usage — meaning the more your users engage, the more it costs you. Add rising user acquisition (UA) costs and increasing competition, and the case for layering additional revenue streams onto your subscription becomes clear. But hybrid monetization isn't just about managing costs: it's also about unlocking revenue from the 90% of users who never subscribe, and from power users who are willing to pay far more than a standard subscription price.
David and Thomas walk through the full landscape of hybrid monetization tactics — from consumable in-app purchases and subscription tiers, to affiliate partnerships, e-commerce, B2B/prosumer APIs, and virtual currencies — with real-world examples including Tinder, PhotoRoom, Duolingo, Fishbrain, and TikTok. They also cover the strategic question of where to start: not by picking a tactic off a list, but by identifying what your most engaged users actually want.
The session closes with a live Q&A covering trial conversion benchmarks, how to attribute ad revenue for UA campaigns, handling unpredictable TikTok traffic, and how to know whether you have product-market fit.
Chapters:
0:00 Introduction
3:27 What is hybrid monetization?
5:53 Why hybrid monetization matters in 2026 (AI costs & UA inflation)
8:34 When pure subscription optimisation hits diminishing returns
13:29 The two problems hybrid monetization solves (low floor & low ceiling)
16:09 How to decide where to start: ask your power users first
18:45 Real-world example: AI app with unprofitable heavy users
20:03 Football app + beverage delivery partnership example
29:12 Full rundown: consumables, IAPs, tiers, ads, affiliates, e-commerce, B2B
32:16 Affiliate monetization as a low-risk test for e-commerce
35:00 Fishbrain and the affiliate-to-e-commerce pathway
38:30 Freemium vs. hard paywall: when to use each
42:04 Q&A: YouTube memberships and tipping models (TikTok, Reddit, Discord)
47:08 Q&A: How to judge trial conversion rate at early stage
53:11 Q&A: How to attribute ad revenue for UA campaigns
57:02 Q&A: Duolingo's 90/10 subscription-to-ads revenue split
1:01:23 Q&A: Handling unpredictable TikTok traffic
1:04:30 Q&A: How to know if you have product-market fit — and when to quit
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