Wednesday, February 10, 2016

Content Drives Mobile App Revenue

Content apps and services now drive nearly all revenue in the mobile app business.

Games generated approximately 85 percent of mobile app market revenue in 2015, representing a total of $34.8 billion across the globe, says App Annie. By 2020, games will still represent close to three quarters of mobile app revenue.

But a large percentage of the new “non-game” revenue will come from content subscriptions  for video and music.

“We expect the games category to grow to $41.5 billion in 2016 and $74.6 billion in 2020 thanks to strong monetization in mature markets, especially China's tier-one and tier-two cities, as well as Japan and South Korea,” App Annie says.

Revenue from other apps is expected to grow even faster, from $6.3 billion in 2015 to $9.4 billion in 2016 to $26.4 billion in 2020, principally on the strength of subscription-based revenue models.

Music streaming, video streaming and dating apps have become major revenue drivers in these markets, says App Annie.



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