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Consumer mobile apps revenues to pass $50 bn by 2016

07 февраля 2012

A new report from Juniper Research finds that annual revenues from consumer mobile applications will approach $52 billion by 2016 as consumer smartphone adoption accelerates in tandem with the emergence of a mass tablet market.

The report finds that the introduction of  operator billing across leading storefronts such as the Android Market and Ovi Store had led to a dramatic rise in revenues. Likewise, the mass deployment of in-app billing options meant that, for many storefronts, post-download revenues had surpassed those of PPD (Pay-Per-Download).

While smartphones will continue to comprise the majority of app revenues over the forecast period, the report noted that tablets – which currently account for just 7% of global app revenues – would comprise 25% of such revenues by 2016.

HTML5 heightens publisher D2C opportunity

The report observed that the app store model’s pre-eminence faced the prospect of erosion in the longer term as HTML5 – a markup language which reduces end-user dependence on plug-in app technologies – facilitates the transition to a browser-based environment. Additionally, the closer integration between web-based apps and handsets should mean that the advantage that native apps have is reduced.

This in turn offers great opportunities for content publishers to offer content on-site rather than be reliant on storefront distribution. Nevertheless, as report author Dr Windsor Holden noted, “While we are likely to see some larger media publishers – particularly those dependent on subscription revenues – migrating to a direct-to-consumer model (D2C), this is by no means true for the majority of companies. Most do not possess the scale of traffic to make D2C a viable option: in most cases, the storefront will continue to be the optimal discovery and distribution mechanism.”

Other findings from the report include:

  • Most network operator storefronts will struggle to attract developers due to lack of scale
  • More than 31 billion apps downloaded to mobile devices in 2011


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