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Juniper Research: Freemium model to predominate in mobile apps with VAS revenues reaching $14 billion by 2014

Categories: Applications, Research
By: , IntoMobile
Thursday, May 21st, 2009 at 4:43 AM

Juniper Research reportAccording to a new report from Juniper Research, annual revenues from value-added services upsold through mobile apps are expected to exceed $14 billion by 2014. Over the next five years, this model where applications are offered for free but subsequently offer incremental revenues from subscription-based services and additional content options will become increasingly prevalent over the next five years.

However, the report also observed that widespread deployment of these apps would pose a significant challenge to network operators, which could end up losing revenues from mobile content. On the other hand, operators will get their piece of the pie from subscribers’ mobile data usage.

Other findings from the report include:

  • The low retail prices offered by Apple’s AppStore have already resulted in significant price erosion on other established storefronts;
  • Short-term revenue growth from consumer-oriented applications is likely to be constrained by the global recession.

More information about Juniper’s report is available from their website.

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About The Author

Dusan Belic

Dusan has been using smartphones since their introduction and is now following the latest trends in the industry. The "convergence" is what he's most excited about, and writing about it is the next logical thing to do. He thinks that using a smartphone is what everyone who cares about their time should do. In addition to his interests in mobile phones, Dusan also loves to experiment with the latest web and mobile 2.0 services. The idea of accessing and managing your information from any device no matter where you are simply amazes him. Whether it's an online to-do list, note taking service or a video sharing social network, he's there to try it out. He admits though, he's still searching for the ultimate web-based organizational tool, which "sings" perfectly with the mobile PIM application. Dusan used to run SymbianWatch.com which later became part of IntoMobile. He lives in Serbia, South-East Europe, from where he edits the site on a daily basis.