sensor tower

Top 10 US subscription video apps pulled in $1.3B last year, a 62% increase from 2017

Posted by | app stores, Apps, Earnings, Mobile, mobile apps, sensor tower, subscriptions | No Comments

Subscriptions are booming on the app stores, and particularly subscription video apps, thanks to the growing number of cord cutters who are choosing to stream their TV shows and movies instead of paying for cable or satellite. In the U.S., the top 10 subscription video apps by revenue pulled in $1.27 billion in 2018 across both the iOS App Store and Google Play, according to new data from Sensor Tower — that’s a 62 percent increase over the $781 million spent in 2017.

It’s also three times higher than what was spent in these apps back in 2016.

The top app, not surprisingly, was Netflix — which snagged the spot for the second year in a row. It earned an estimated $529 million in the U.S., the report found. However, Netflix won’t maintain the top spot in the rankings in 2019, as the company recently made a decision to keep more of its subscription revenue to itself.

Netflix in 2018 had dropped in-app subscription sign-ups in its Android app on Google Play, then did the same on the iOS App Store in December. That will decrease its in-app subscription revenues this year, though it won’t immediately go to zero because of revenues from existing subscribers.

The No. 2 top grossing app was YouTube, which is maybe more of a surprise to those who don’t realize that the app they use to watch free videos is making quite so much money through in-app purchases. But YouTube offers a couple of different types of in-app purchases, including subscriptions to its ad-free tier, YouTube Premium, as well as virtual currency to be used in Super Chat.

Sensor Tower says YouTube took in less than half as much revenue as Netflix at around $223 million, but it grew substantially in 2018 — up 114 percent from $104 million in 2017.

HBO NOW was the No. 3 top grossing app, even though its subscriber base declined. The app generated 12 percent less in 2018, at $166 million, down from $189 million. The reason, naturally, was that the app was without “Game of Thrones” to attract viewers. That doesn’t bode all that well for HBO’s future without “Thrones,” unless its spin-off becomes a hit.

Hulu and YouTube TV were the No. 4 and No. 5 apps, respectively. Hulu grew by 68 percent while YouTube TV jumped up a whopping 419 percent. CBS’s streaming app is doing decently, too, with 57 percent year-over-year growth in subscriber spending.

Much of that comes from streamers interest in the new “Star Trek” series. In fact, with the Season 2 premiere this month, CBS said its streaming service hit a new milestone across both subscription sign-ups and unique viewers in a weekend. While the network didn’t share exact numbers, it said the January 19 weekend, when the new season of “Star Trek: Discovery” aired, eclipsed 2017’s previous record from the series premiere by more than 72 percent, in terms of sign-ups.

 

Combined, 2018’s top 10 subscription streaming apps accounted for a sizable chunk — now 22 percent — of non-game app revenue on the app stores in the U.S. Their 62 percent revenue growth was also more than all the other non-game apps combined, which grew 56 percent year-over-year, the new report said.

Subscriptions — and not just for streaming apps — have become the new driver for non-game spending on the app stores, and that isn’t going to change anytime soon.

According to App Annie’s recent forecast for 2019, 10 minutes of every hour spent consuming media across TV and internet will come from streaming video on mobile. It estimates that total time in video streaming apps will increase 110 percent from 2016 to 2019, with consumer spend in entertainment apps rising by 520 percent over that same period. Most of those revenues will come from the growth in in-app subscriptions, the firm had said earlier.

Powered by WPeMatico

Video game revenue tops $43 billion in 2018, an 18% jump from 2017

Posted by | america, computing, Earnings, Electronic Arts, Entertainment, entertainment software association, esa, fortnite battle royale, Gaming, HBO, Netflix, Reed Hastings, sensor tower, streaming services, TC, video game, YouTube | No Comments

Video game revenue in 2018 reached a new peak of $43.8 billion, up 18 percent from the previous years, surpassing the projected total global box office for the film industry, according to new data released by the Entertainment Software Association and The NPD Group.

Preliminary indicators for global box office revenues published at the end of last year indicated that revenue from ticket sales at box offices around the world would hit $41.7 billion, according to comScore data reported by Deadline Hollywood.

The $43.8 billion tally also surpasses numbers for streaming services, which are estimated to rake in somewhere around $28.8 billion for the year, according to a report in Multichannel News.

Video games and related content have become the new source of entertainment for a generation — and it’s something that has new media moguls like Netflix chief executive Reed Hastings concerned. In the company’s most recent shareholder letter, Netflix said that Fortnite was more of a threat to its business than TimeWarner’s HBO.

“We compete with (and lose to) Fortnite more than HBO,” the company’s shareholder letter stated. “When YouTube went down globally for a few minutes in October, our viewing and signups spiked for that time…There are thousands of competitors in this highly fragmented market vying to entertain consumers and low barriers to entry for those with great experiences.”

“The impressive economic growth of the industry announced today parallels the growth of the industry in mainstream American culture,” said acting ESA president and CEO Stanley Pierre-Louis, in a statement. “Across the nation, we count people of all backgrounds and stages of life among our most passionate video game players and fans. Interactive entertainment stands today as the most influential form of entertainment in America.”

Gains came from across the spectrum of the gaming industry. Console and personal computing, mobile gaming, all saw significant growth, according to Mat Piscatella, a video games industry analyst for The NPD Group.

According to the report, hardware and peripherals and software revenue increased from physical and digital sales, in-game purchases and subscriptions.

U.S. Video Game Industry Revenue 2018 2017 Growth Percentage
Hardware, including peripherals $7.5 billion $6.5 billion 15%
Software, including in-game purchases and subscriptions  

$35.8 billion

 

$30.4 billion

18%
Total: $43.3 billion $36.9 billion 18%

Source: The NPD Group, Sensor Tower

Powered by WPeMatico

Chinese app developers have invaded India

Posted by | alibaba, Android, Apps, Asia, bytedance, China, Flash, food delivery, india, oppo, Paytm, sensor tower, SnapDeal, Tencent, tiktok, WeChat, Xiaomi | No Comments

If you’ve conquered China, then India — the world’s second-largest country based on population — is the obvious next port of call, and that’s exactly what has happened in the world of consumer apps.

Following the lead of Chinese smartphone makers like Xiaomi and Oppo, which have dominated mobile sales in India for some time, the content behind the touchscreen glass in India is increasingly now from China, too. That’s according to a report from FactorDaily, which found that 44 of the top 100 Android apps in India were developed by Chinese companies, up from just 18 one year prior. (The focus is on Android because it is the overwhelming choice of operating system among India’s estimated 500 million internet users.)

The list of top Chinese apps includes major names like ByteDance, the world’s highest-valued startup, which offers TikTok and local language news app Helo in India, and Alibaba’s UCbrowser, as well as lesser-known quantities like Tencent-backed NewsDog and quiet-yet-prolific streaming app maker Bigo.

Citing data from Sensor Tower, the report found that five of the top 10 Android apps in India are from China, up from just two at the end of 2017.

For anyone who has been watching the Indian technology scene in recent years, this “Chinese app store invasion” will be of little surprise, although the speed of change has been unexpected.

China’s two biggest companies, Alibaba and Tencent, have poured significant amounts into promising Indian startups in recent years, setting the stage for others to follow suit and move into India in search of growth.

Alibaba bought into Snapdeal and Paytm via multi-hundred-million-dollar investments in 2015, and the pace has only quickened since then. In 2017, Tencent invested in Gaana (music streaming) and Swiggy (food delivery) in major deals, having backed Byju’s (education) and Ola (ride-hailing) the year prior. The pair also launched local cloud computing services inside India last year.

Beyond those two, Xiaomi has gone beyond selling phones to back local companies and develop local services for its customers.

That local approach appears to have been the key for those app makers which have found success in India. Rather than taking a very rigid approach like Chinese messaging app WeChat — owned by Tencent, which failed in India — the likes of ByteDance have developed local teams and, in some cases, entirely local apps dedicated to India. With the next hundreds of millions of internet users in India tipped to come from more rural parts of the country, vernacular languages, local content and voice-enabled tech are some of the key strategies that, like their phone-making cousins, Chinese app developers will need to focus on to ensure that they aren’t just a flash in the pan in India.

You can read more at FactorDaily.

Powered by WPeMatico

Epic Games, the creator of Fortnite, banked a $3 billion profit in 2018

Posted by | 2018 Year in Review, Android, Apps, Beijing, China, computing, epic games, fortnite, fortnite battle royale, game publisher, Gaming, Google, Google Play Store, Kleiner Perkins, lightspeed, Nintendo, sensor tower, smartphone, Software, Tencent, the wall street journal, unreal engine, wall-street-journal | No Comments

Epic Games had as good a year in 2018 as any company in tech. Fortnite became the world’s most popular game, growing the company’s valuation to $15 billion, but it has helped the company pile up cash, too. Epic grossed a $3 billion profit for this year fueled by the continued success of Fortnite, a source with knowledge of the business told TechCrunch.

Epic did not respond to a request for comment.

Fortnite, which is free to play but makes money selling digital items, has popularized the battle royale category — think Lord of the Flies meets Hunger Games — almost single-handedly, and it has been the standout title for the U.S.-based game publisher.

Founded way back in 1991, Epic hasn’t given revenue figures for its smash hit — which has 125 million players — but this new profit milestone, combined with other pieces of data, gives an idea of the success the company is seeing as a result of a prescient change in strategy made six years ago.

This past September, Epic commanded a valuation of nearly $15 billion, according to The Wall Street Journal, as marquee investors like KKR, Kleiner Perkins and Lightspeed piled on in a $1.25 billion round to grab a slice of the red-hot development firm. However, the investment cards haven’t always been stacked in Epic’s favor.

China’s Tencent, the maker of blockbuster chat app WeChat and a prolific games firm in its own right, became the first outside investor in Epic’s business back in 2012 when it injected $330 million in exchange for a 40 percent stake in the business.

Back then, Epic was best known for Unreal Engine, the third-party development platform that it still operates today, and top-selling titles like Gears of War.

Why would a proven company give up such a huge slice of its business? Executives believed that Epic, as it was, was living on borrowed time. They sensed a change in the way games were headed based on diminishing returns and growing budgets for console games, the increase of “live” games like League of Legends and the emerging role of smartphones.

Speaking to Polygon about the Tencent deal, Epic CEO Tim Sweeney explained that the investment money from Tencent allowed the company to go down the route of freemium games rather than big box titles. That’s a strategy Sweeney called “Epic 4.0.”

“We realized that the business really needed to change its approach quite significantly. We were seeing some of the best games in the industry being built and operated as live games over time rather than big retail releases. We recognized that the ideal role for Epic in the industry is to drive that, and so we began the transition of being a fairly narrow console developer focused on Xbox to being a multi-platform game developer and self publisher, and indie on a larger scale,” he explained.

Tencent, Sweeney added, has provided “an enormous amount of useful advice,” while the capital enabled Epic to “make this huge leap without the immediate fear of money.”

LOS ANGELES, CA – JUNE 12: Gamers ‘Ninja’ (L) and ‘Marshmello’ compete in the Epic Games Fortnite E3 Tournament at the Banc of California Stadium on June 12, 2018 in Los Angeles, California. (Photo by Christian Petersen/Getty Images)

Epic never had a problem making money — Sweeney told Polygon the first Gear of Wars release grossed $100 million on a $12 million development budget. But with Fortnite, the company has redefined modern gaming, both by making true cross-platform experiences possible and by pulling in vast amounts of money.

As a private company, Epic keeps its financials closely guarded. But digging beyond the $3 billion figure — which, to be clear, is annual profit not revenue — there are clues as to just how big a money-spinner Fortnite is. Certainly, there’s room to wonder whether analyst predictions this summer that Fortnite would gross $2 billion this year were too conservative.

The most recent data comes from November when Sensor Tower estimates that iOS users alone were spending $1.23 million per day. That helped the game bank $37 million in the month and take its total earnings within Apple’s iOS platform to more than $385 million.

But, as mentioned, Fortnite is a cross-platform title that supports PlayStation, Xbox, Switch, PC, Mac, Android and iOS. Aggregating revenue across those platforms isn’t easy, and the only real estimate comes from earlier this year when Super Data Research concluded that the game made $318 million in May across all platforms.

That is, of course, when Fortnite was fresh on iOS, non-existent on Android and with fewer overall players.

We can deduce from Sensor Tower’s November estimate that iOS pulled in $385 million over eight months — between April and November — which is around $48 million per month on average. Android is harder to calculate since Epic skipped Google’s Play Store by distributing its own launcher. While it quickly picked up 15 million Android users within the first month, tracking that spending off-platform is a huge challenge. Some estimates predicted that Google would miss out on around $50 million in lost earnings this year because in-app purchases on Android would not cross its services.

There are a few factors to add further uncertainty.

Fortnite spending tends to spike around the release of new seasons — updated versions of the game — since users are encouraged to buy specific packages at the start. The latest, Season 7, dropped early this month with a range of tweaks for the Christmas period. Given the increased velocity at which Fortnite is picking up players and the appeal of the festive period, this could have been its biggest revenue generator to date, but there’s not yet any indicator of how it performed.

More broadly, Fortnite has undoubtedly lost out on revenue in China, which froze new game licenses nine months ago, thereby preventing any publishers from monetizing new titles over that period.

Tencent, which publishes Fortnite in China, did release the game in the country but it hasn’t been able to draw revenue from it yet. The Chinese government announced last week that it is close to approving its first batch of new titles, but it isn’t clear which games are included and when the process will be done.

Already, the effects have been felt.

Games are forecast to generate nearly $40 billion in revenue in China this year, according to market researcher Newzoo. However, the industry saw its slowest growth over the last 10 years as it grew 5.4 percent year-over-year during the first half of 2018, according to a report by Beijing-based research firm GPC and China’s official gaming association CNG.

Fortnite and PUBG — another battle royale title backed by Tencent — have perhaps suffered the most since they are universally popular worldwide but unable to monetize in China. It seems almost certain that those two titles will receive a major marketing push if, as and when they receive the license and, if Epic can keep the game competitive as Sweeney believed it could back in 2012, then it could go on and make even more money in 2019.

Epic Games is taking on Steam with its own digital game store, which includes higher take-home revenue rates for developers.

But Epic isn’t relying solely on Fortnite.

A more low-key but significant launch this month was the opening of the Epic Games store, which is aimed squarely at Steam, the leader in digital game sales.

While Fortnite is its most prolific release, Epic also makes money from other games, Unreal Engine and a recently launched online game store that rivals Steam. Epic’s big differentiator for the store is that it gives developers 88 percent of their revenue, as opposed to Value — the firm behind Steam — which keeps 30 percent, although it has added varying rates for more successful titles. Customers are promised a free title every two weeks.

Either way, Epic is betting that it can do a lot more than Fortnite, which could mean that its profit margin will be even higher come this time next year.

Powered by WPeMatico

Netflix just had a record-breaking November on mobile

Posted by | Apps, Media, Mobile, Netflix, sensor tower, streaming, streaming services, TC | No Comments

Netflix just broke new records on consumer spending in its mobile apps, according to new data app intelligence firm Sensor Tower has shared with TechCrunch. In November, Netflix pulled in an estimated $86.6 million in worldwide consumer spending across its iOS and Android apps combined — a figure that’s 77 percent higher than the $49 million it generated last November. That’s a new record.

Before, the biggest month Netflix had to date was July 2018, when it grossed an estimated $84.7 million. At the time, that was the most it had made on mobile since it began monetizing on mobile in September 2015.

To date, Netflix has grossed more than $1.58 billion on mobile.

The firm didn’t speculate as to what, specifically, drove Netflix to break records again in November, but there are probably a few factors at play, including the trend toward cord cutting and shift toward streaming services for traditional “TV” viewing.

But most notably is the increasing revenue coming to Netflix from its international markets.

Sensor Tower did point out that Netflix’s U.S. app revenue grew 76 percent year-over-year in November, but other countries contributing more than $1 million in gross revenue were higher. For example, Germany grew 90 percent, Brazil was 94 percent, South Korea was 107 percent and Japan was 175 percent.

However, the U.S. still accounts for the majority of Netflix’s in-app subscription revenue, at 57 percent in November, or $49.4 million. But with Netflix’s international expansion, its share is declining. When Netflix first began offering subscriptions in fall 2015, the U.S. then accounted for 71 percent of its revenue.

Netflix in recent weeks has been doubling down on mobile. The company is now testing a mobile-only subscription aimed at making its service more affordable in Asia and other emerging markets.

In Q3, the company gained nearly 7 million new subscribers, with 5.87 million of those coming from international markets.

Image credit: Sensor Tower 

Note: Post updated with corrected percentages after publication due to a Sensor Tower calculation error. 

Powered by WPeMatico

US mobile app stores had their biggest day ever on Black Friday 2018

Posted by | app-store, apple-app-store, Apps, black friday, black friday 2018, Google Play, Mobile, sensor tower | No Comments

Black Friday wasn’t just a boon for e-commerce retailers, it helped the mobile app stores break new records, too. According to a new report from Sensor Tower, the combined consumer spending across the U.S. Apple App Store and Google Play on Black Friday 2018 reached $75.9 million — a record for the most ever spent in a single day on both stores.

The App Store accounted for most of that figure, however, with U.S. consumers spending a record $52 million on Black Friday. That’s a 31.6 percent increase in spending over last year’s shopping event, when consumers then spent $39.5 million.

It’s also notably higher than Christmas 2017, when spending reached $39.8 million — typically a strong day for app purchases and in-app sales, as consumers unwrap new iPhones.

The App Store’s $52 million was more than double the $23.9 million spent on Google Play during the same time.

Sensor Tower attributes the increased spending to a variety of factors, largely driven by mobile gaming. Game makers this year got in on the Black Friday action by offering players discounts on in-app purchases and other special bundles.

On the U.S. App Store, mobile gaming accounted for 68 percent of Black Friday spending, with consumers spending $35.4 million on games. That’s a 63 percent increase from the week prior, the report notes.

Other categories saw a boost, too, including Food & Drink and Sports — both reflective of the leisure time consumers had over the holidays. Food & Drink grew 34 percent while Sports grew 49 percent, Sensor Tower found, with top apps like NYT Cooking and ESPN: Live Sports and Scores benefiting from the surge.

Though the Black Friday shopping holiday is heavily associated with the U.S. because of its ties to Thanksgiving, the sales event is making its way around the world, too.

On the mobile app stores, that meant worldwide consumer spending saw a jump this year, as well.

The firm found that $117.3 million was spent by App Store users outside the United States on Black Friday, bringing the global total to $169.3 million, up 18.4 percent from 2017. The spending outside the U.S. was up 13.9 percent year-over-year, but that’s lower than the U.S.’s year-over-year growth of 31.6 percent between Black Friday 2017 and Black Friday 2018.

Also of note: While Amazon had its biggest day ever on Cyber Monday 2018, Cyber Monday didn’t perform as well on the app stores. In the U.S., app revenue was up about 20 percent versus the previous Cyber Monday, to reach an estimated $37 million.

Powered by WPeMatico

Black Friday drove half a million new users to the top shopping apps

Posted by | app-store, Apps, black friday, eCommerce, Mobile, sales, sensor tower, shopping | No Comments

More U.S. consumers were shopping on mobile devices on Black Friday this year, with $2.1 billion in sales coming from smartphones. This trend was also reflected across the U.S. App Store. According to new data from Sensor Tower out this morning, the top 10 shopping apps on the App Store added half a million first-time users on Black Friday. That’s up 16.3 percent from the same day in 2017, the firm found.

Overall, new shopping app installs grew 9 percent over last year, to reach approximately 1.8 million. To be clear, this number is new downloads, not re-downloads from someone who previously had the app installed on their device, but deleted it at some point. (Of course, those consumers may have already been customers on the web.)

Not surprisingly, Amazon’s app was the most installed, as it has been in years past. But Walmart’s app gained steam as it saw more significant year-over-year growth, the report said.

This year, Amazon added around 115,000 new app users, up 11.7 percent from 2017. Walmart, however, added 95,000 first-time users, up 39.7 percent over last year. Target’s app, which was the third most installed this year, grew 3.3 percent, from 2017 with around 62,000 new users.

The rest of the top 10 was rounded out by Wish, Best Buy, eBay, Offer Up, Fashion Nova, Macy’s and JCPenney. This includes both brick-and-mortar and online retailers.

In terms of online-only retailers, the list looked a little different. Amazon was still in the lead, but was then followed by Wish, eBay, Offer Up, Fashion Nova, GOAT, Poshmark, Letgo, Zaful and Shein.

Walmart, meanwhile, was the most-downloaded app out of all the brick-and-mortar retailers, followed by Target, Best Buy, Macy’s, JCPenney, Nike, Ulta, Forever 21, Hollister and Sephora.

Overall, new downloads from the brick-and-mortar apps were up 24.7 percent over last year’s Black Friday, while the online-only apps grew around 20 percent.

Of these, Best Buy also had a good year in terms of new installs, the firm said. Around 34.5 percent new users installed its app for the first time, with about 39,000 new downloads in 2018 compared to 29,000 in 2017.

Sensor Tower wasn’t the only App Store intelligence firm predicting a boost in mobile shopping for this year’s Black Friday. App Annie also forecast the sales holiday in 2018 would break new records.

In the two-week period including Thanksgiving, Black Friday and Cyber Monday, App Annie was predicting a 25 percent increase in time spent in shopping apps on Android devices — nearly double from the four years prior.

However, the Google Play numbers aren’t in yet to confirm this. They should be available later in the week.

Powered by WPeMatico

Consumers spent $329M on the top 10 subscription video apps last quarter

Posted by | Apple, Apps, Google, Media, Mobile, Netflix, sensor tower, subscriptions | No Comments

Last year, the top subscription video apps like Netflix and Hulu raked in a combined $781 million, and that trend is showing no sign of slowing down in 2018. In the third quarter of 2018, U.S. consumers spent an estimated $329 million in the top 10 subscription video-on-demand apps across the App Store and Google Play — a figure that’s up 15 percent from the $285 million spent in Q1.

The data is the latest in a new report from app intelligence firm Sensor Tower, which has been following the growth of subscription video apps for some time. Last year, for example, it found that Netflix’s app topped the charts in terms of revenue, when compared with all the other non-game apps on the market.

Netflix hasn’t fallen from its top-ranked position, the new data shows. In fact, it’s continuing to grow.

The app pulled in an estimated $132 million in consumer spending across the app stores in Q3, which is up 78 percent from the $74 million spent in the third quarter of 2017.

However, Hulu is now growing faster, the report found. It saw subscription revenue jump 86 percent to $39 million, up from $21 million a year ago.

It seems some consumers may have made the move to Hulu thanks to the extra cash they had on hand, thanks to dropping their HBO subscription.

The only subscription video app that saw revenue decline in Q3 was HBO NOW, which took in $41 million in the quarter, down 40 percent from the $68 million in Q3 2017. But notably absent this quarter was the network’s biggest draw, “Game of Thrones,” which had been airing at this time last year. A drop was expected.

The top-grossing chart of these subscription video apps for Q3 2018 looks very similar to last year’s in terms of the apps included, and sometimes, even their rankings.

But two services made moves, the report says.

YouTube TV jumped from $3 million in the year-ago quarter to $16 million in Q3 on Apple’s App Store, thanks to its expanded market penetration and consumer adoption. And ESPN Live Sports, which added in-app subscriptions in Q2, grossed $4.6 million in the third quarter, up 119 percent from Q2.

Even CBS is doing well, despite the fact that not everyone loves the new “Star Trek.”

Still, it appears CBS made a good move by betting on fans’ devotion to the franchise, as U.S. consumers spent $6 million in the app in Q3 2018, up 50 percent from the $4 million spent in Q3 2017.

The report’s data includes subscription revenues only, not refunds or in-app advertising revenues, Sensor Tower notes.

The broad increases in consumer spending on these video apps is yet another example of the significant and growing subscription business — much of which is taking place on mobile. Subscriptions accounted for $10.6 billion in consumer spend on the App Store in 2017, and are poised to grow to $75.7 billion by 2022, an earlier report found.

However, the top subscription apps aren’t all video apps. Others that consistently rank highly in the U.S. include Tinder, Spotify and Pandora, for example. Currently, the top-grossing chart for the App Store includes a number of non-games, like Netflix (No. 1), YouTube (No. 2), Tinder (No. 3), Pandora (No. 4), Hulu (No. 7), and Bumble (No. 8).

Powered by WPeMatico

Google will lose $50 million or more in 2018 from Fortnite bypassing the Play Store

Posted by | Android, android apps, Android games, Apps, epic games, fortnite, games, Gaming, Google, Mobile, play store, sensor tower | No Comments

When Fortnite Battle Royale launched on Android, it made an unusual choice: it bypassed Google Play in favor of offering the game directly from Epic Games’ own website. Most apps and games don’t have the luxury of making this choice – the built-in distribution Google Play offers is critical to their business. But Epic Games believes its game is popular enough and has a strong enough draw to bring players to its website for the Android download instead. In the process, it’s costing Google around $50 million this year in platform fees, according to a new report.

As of its Android launch date, Fortnite had grossed over $180 million on iOS devices, where it had been exclusively available since launching as an invite-only beta on March 15th, before later expanding to all App Store customers.

According to data from app store intelligence firm Sensor Tower, the game has earned Apple more than $54 million thanks to its 30 percent cut of all the in-app spending that takes place on apps distributed in its store.

That’s money Epic Games isn’t apparently willing to give up to Google, when there’s another way.

Unlike Apple, which only allows apps to be downloaded from its own storefront, Google’s platform is more open. There’s a way to adjust an Android device’s settings to download apps and games from anywhere on the web. Of course, by doing so, users are exposed to more security risks, malware infections, and other malicious attacks.

For those reasons, security researchers are saying that Epic Games’ decision sets a dangerous precedent by encouraging people to remove the default security protections from their devices. They’re also concerned that users who look for the game on Google Play could be fooled into downloading suspicious copycat apps that may be trying to take advantage of Fortnite’s absence to scam mobile users.

Google seems to be worried about that, too.

For the first time ever, the company is informing Google Play users that a game is not available for download.

Now, when users search for things like “Fortnite” or “Fortnite Battle Royale,” Google Play will respond that the app is “not available on Google Play.” (One has to wonder if Google’s misspelling of “Royale” as “Royal” in its message was a little eff u to the gamemakers, or just a bit of incompetence.)

In any event, it’s an unusual response on Google’s part – and one it can believably claim was done to serve users as well as protect them from any potential scam apps.

However, the message could lead to some pressure on Epic Games, too. It could encourage consumer complaints from those who want to more easily (or more safely) download the game, as well as from those who don’t understand there’s an alternative method or are confused about how that method works.

In addition, Google is serving up the also hugely popular PUBG Mobile at the top of Fortnite search results followed by other games. In doing so, it’s sending users to another game that can easily eat up users’ time and attention.

For Google, the move by Epic Games is likely troubling, as it could prompt other large games to do the same. While one odd move by Epic Games won’t be a make or break situation for Google Play revenue (which always lags iOS), if it became the norm, Google’s losses could climb.

At present, Google is missing out on millions that will now go directly to the game publisher itself.

Over the rest of 2018, Sensor Tower believes Fortnite will have gained at least $50 million in revenues that would otherwise have been paid out to Google.

The firm expects that when Fortnite rolls out to all supported Android devices, its launch revenue on the platform will closely resemble the first several months of Apple App Store player spending.

It may even surpass it, given the game’s popularity continues growing and the standalone download allows it to reach players in countries where Google Play isn’t available.

Meanwhile, there have been concerns that the download makes it more difficult on users with older Android devices to access the game, because the process for sideloading apps isn’t as straightforward. But Sensor Tower says this will not have a large enough impact to affect Fortnite’s revenue potential in the long run.

Powered by WPeMatico

The World Cup led to a record-breaking number of app downloads and consumer spend in Q2

Posted by | App Annie, app-store, Apps, Google Play, iOS App Store, Mobile, sensor tower, world cup | No Comments

The second quarter of 2018 was another record-breaker for mobile app downloads and revenue. According to a new report this week from App Annie, there were over 28.4 billion app downloads worldwide across both iOS and Google Play in the quarter, up 15 percent year-over-year. That number is even more remarkable because it doesn’t include reinstalls or updates – only new app downloads. In addition, consumer spending in apps was up 20 percent year-over-year to reach $18.5 billion across iOS and Google Play combined.

This is the most money spent in apps compared with any other quarter before, the report notes, topping the prior quarter’s record-breaking $18.4 billion in app revenue, and 27.5 billion downloads.

Much of the download activity in Q2 came from Google Play.

On its app marketplace alone, global downloads topped 20 billion, up 20 percent year-over-year and widening the gap between itself and iOS by 25 percent points to 160 percent. (See below).

This massive download growth is attributable largely to India, says App Annie .

The country was the biggest driver of download growth year-over-year in both absolute values and growth in market share. Indonesia also played a big role in Google Play downloads.

Meanwhile, the U.S., Russia and Saudi Arabia saw the largest growth in iOS downloads.

In particular, Google Play app downloads included growth in categories like games, video players and editors, and – not surprisingly, given the World Cup – sports applications. And on iOS, Sports apps were also the largest driver of global iOS downloads, followed by Finance and Travel apps.

The impact on the 2018 FIFA World Cup on sports app downloads was also highlighted last month by Sensor Tower, whose own analysis found that new installs of the five leading live TV on demand apps offering channels with the World Cup grew 77 percent during the first week of World Cup coverage, compared with the three preceding weeks (excluding the NBA Finals period).

Sports streaming service fuboTV saw the largest impact, growing at a whopping 713 percent and adding 309K new users in the U.S., while Hulu saw the smallest impact at 18 percent growth.

Single network apps grew, too, this earlier report said. FOX Sports downloads increased by 95x for the same period, while Telemundo Deportes En Vivo grew 444x, for example.

App Annie added that the top 3 sports apps in Android in the U.S. during the first three weeks of the tournament were Telemundo Deportes (#1), FOX Sports GO (#2), and FOX Sports (#3), in terms of average megabytes per user – an indication of users’ live-streaming activity. The apps were also new entrants to the top 10 list of apps by total time spent, compared with the three weeks directly prior.

In the U.K., over 6 million hours were spent in the top 10 sports apps on Android during the first 3 weeks of the World Cup, up 65 percent from the 3 weeks prior.

The World Cup also had an impact on consumer spending in apps in the quarter.

Sports apps on iOS were the third largest contributors to absolute growth in consumer spend and in market share in Q2, while Entertainment and Productivity apps were numbers one and two, respectively. In-app subscriptions for both Sports and Entertainment apps drove the consumer spending increases.

On Google Play, Games, Social, and Music & Audio apps saw the largest download growth, quarter-over-quarter.

However, despite the downloads and consumer spending in sports and TV apps, the charts of the top 10 apps by worldwide downloads and consumer spending look a lot like they usually do – with Facebook apps dominating the top 10 by downloads (Messenger, Facebook, WhatsApp and Instagram were the top  4).

And the top 10 apps by spending were still largely those subscription-based entertainment services like Netflix, Tencent Video, iQIYI, Pandora, Youku, and YouTube.

Powered by WPeMatico