Annual revenues from apps accessed via mobile handsets and tablets are expected to reach $99bn by 2019, new research from Juniper Research has found.
The research found that while games would continue to account for the largest share of revenues for the next five years, highest growth would be experienced in areas such as lifestyle applications (such as dating and navigation) and eBooks. Only 1% of applications are no paid for at the point of download.
Juniper additionally observed that navigation apps continued to buck the trend towards freemium and use a PPD (Pay Per Download) model, with many apps charging a high ($50 plus) one-off price. However, it argued that even here the model was expected to transition to a subscription-based/ model, with features including live traffic updates allowing for ongoing revenue streams.
Additionally, the research confirmed that while a few network operators still maintained app storefronts, these now accounted for less than 2% of app downloads worldwide. According to research author Dr Windsor Holden, “Operators have finally recognised that they cannot compete with Apple and Google from a content distribution basis. If they are to monetise content, that revenue has to come from bundling content into subscriptions or through leveraging the billing relationship.”
More than 235bn apps will be downloaded worldwide this year.