introduction of alternative business models propel the platforms forward as
paid download revenues peak in 2014
Boston, MA - November
– As Windows 8 launches, the iPhone 5 and iPad Mini continue to see long
ordering delays, Android exceeds 1M activations a day and RIM prepares
BlackBerry 10 for early 2013, the app
market is poised for continued growth.
The Strategy Analytics
App Ecosystem Opportunities (AEO) forecast - Mobile Apps
Revenue Forecast: 2008 – 2017 –
predicts by 2017 the mobile app smartphone market will generate more than $35B
growing from less than $1B in 2009. The app market will be driven by more
targeted advertising, growing consumer interest in virtual goods and the
adoption of subscription business models.
So popular are
alternative business models that while paid downloads accounted for nearly 70 percent
of revenue in 2009 the business model will account for less than 36 percent of total revenue in 2017. Advertising
will grow to generate the most revenue by 2013 as companies invest more in
in-app advertising, improved targeting helps maintain CPMs, and more developers
rely on advertising to drive revenue.
According to Josh Martin, Director
Research, “The battle for developers is on and supporting recurring revenue
streams is essential to gaining developer support. It is for this reason that
Microsoft and Research in Motion are ensuring their new platforms support in-app
purchase and subscription in addition to paid downloads and advertising at
launch. They continue to battle for third place as the forecast shows Apple’s
and Google’s app stores dominating revenue generation for developers throughout
the forecast period."