The App Bubble Burst The Coming App Economy Correction
Get full access to this report and assets
Already a MIDiA client? Login here to view this report.
If you are interested this report, or related reports such as Mobile App Economy Forecast 2015-2020 The Emergence Of A Mature Market, The Mobile App Funnel Benchmarking The Mobile App Customer Lifecycle and The App Superstar Economy Dissecting the Global App Store Marketplace get in touch today to enquire about a report bundle.
The 20,000 Foot View
In May 2014 we warned about potential risks of the Superstar App Economy. Too few apps were taking most of the revenue. Investors funded huge marketing and development budgets in a bid to create mega hits, but in the process raised the barriers to entry. The pursuit of the standout success by a handful of app developers created bubble economics. Many of those pacesetters struggled to come up with follow up hits that met, let alone surpassed, their previous successes. It is now clear that the sustainability of the current mobile app games market, and by implication the broader app economy, cannot be taken for granted. In fact, the app bubble may be about to burst.
Key Findings
- Games still the Top Grossing charts with all Top placings, just down March 2014, though most other gained share
- The five Top Grossing apps are Games
- But Games’ of the Top Free charts by percentage points, down from March to just in October
- None of five Top Grossing apps appear the Top Free apps anymore, that the dominant grossing apps not acquiring new audiences
- This slowdown new audience acquisition will impact app monetisation
- The app dynamics are more pronounced in than in Android due in to the fact that Android spend less than Apple users
Companies mentioned in this report: Apple, Google, Zoosk, Tinder, Deezer, Spotify, Pandora, EA Games, Supercell, KING, Rovio, Disney