Mobile Media Revenue to Hit $75 Billion in Four Years
As tablets begin to permeate western culture, mobile app revenue is set to continue growing, even as the market for smartphone apps begins to slow. The industry will no doubt also become better at separating consumers from their money via mobile devices as monetization schemes become more refined.
Market research firm Juniper Research today revealed its prediction that revenues from mobile entertainment services will reach nearly $75 billion by the year 2017. That is a substantial increase (nearly double) the estimated $39 billion that mobile apps brought in this year.
These revenues will come from all media sources found on mobile devices, including games, movies, video, and gambling. The firm’s report shows that games are likely to remain the largest portion of revenue growth for the next few years, and that the “freemium” model will continue to be preferred on mobile platforms. News and shopping apps will also be growth categories for the next four years.
In addition to better monetization schemes, Juniper believes a not-insignificant amount of the revenue growth will come from newer mobile device product segments such as smart watches and smart glasses. Apps that integrate such devices into an entire mobile device experience will have particular opportunities for high revenue.
This mobile revenue growth will be kicked off this holiday season, as consumers turn on their Black Friday tablets for the first time. Juniper’s report predicts a spike in revenue related to Christmas tablet purchases.
“Christmas provides the biggest opportunity for mobile entertainment providers in terms of exposure,” said Sian Rowlands, author of the Juniper report. “Storefronts and D2C entertainment brands see a surge in activity on and immediately after Christmas Day as consumers browse and download apps for their new devices, and the recent launch of the iPad Air will undoubtedly exacerbate this.”