According 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.