Thanks to the app store frenzy, the total revenues from mobile applications are expected to exceed $25 billion by 2014.
According to Juniper Research, even though the overwhelming majority of app revenues are currently accrued from one-off downloads, the increasing utilization of in-app billing will enable incremental revenues from additional mobile content and will see value-added services (VAS) providing the dominant revenue stream by 2011, as a result.
And while major carriers will launch their own app stores, in longer term, the greatest benefits to them would be derived from data revenues associated with the app usage.
Moreover, the report noted that, given the fact that app stores currently cater exclusively for smartphones, developers and content providers would be unwise to ignore opportunities from traditional app and content distribution and monetization channels.
Other findings from the report include:
- Games will remain the largest category in terms of overall app downloads and revenues, although Multimedia & Entertainment apps will attract the greatest share of VAS revenues from 2009 onwards;
- App stores present a significant challenge to traditional content aggregators who may be obliged both to expand the range of their content portfolios and to amend their business models to remain viable.
More information about the report titled “Mobile Applications & Apps Stores: Business models, Opportunities & Forecasts 2009-2014” is available from Juniper’s website.