Market Shifts In Content Distribution

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Our presentation from Mobile 2.0 Europe, June 17 2011, Barcelona.

Market Shifts In Content Distribution

  1. 1. MARKET SHIFTS INCONTENT DISTRIBUTIONVincent Hoogsteder, Co-founder & CEO Distimo
  2. 2. ABOUT DISTIMO1. Distimo collects all publicly available data from all major application stores worldwide, and enriches it with transactional data.2. The data is thoroughly analyzed and important trends and insights are extracted.3. Insights are provided to developers and device manufacturers
  3. 3. Today:FOUR MAJOR MARKET SHIFTS:WHAT DOES THIS MEAN FOR YOU?
  4. 4. 1. NEW BUSINESS MODELS BECOME KEY REVENUE DRIVER
  5. 5. APP STORE FOR IPHONE: OF ALL APPLICATIONS FEATURE IN-APP PURCHASESBased on United States – April 2011
  6. 6. Paid with In-App 22% Paid only 39% Free with In-App OF REVENUE COMES FROM APPS 39% WITH IN-APP PURCHASESBased on 200 most grossing applications in United States – April 2011
  7. 7. 70% 60% 61% 50% 40% 36% 30% THAT’S UP FROM 20% 36% LAST JUNE. 10% 0% 2010-06 2011-04 REVENUE FROM IN-APP PURCHASE SUPPORTING APPSBased on 200 most grossing applications in United States – June 2010 & April 2011
  8. 8. 1,000-49,999 ≥50,000 4.5% 0.1% 100-999 16.1% ANDROID MARKET: 0.1% OF PAID APPS SOLD OVER 50K TIMES <100 79.3% PROPORTION OF PAID DOWNLOADS PER DOWNLOAD TIERBased on worldwide Android Market downloads since launch of apps present in Android Market United States April 2011
  9. 9. 2 PAID APPS HAD OVER500K DOWNLOADS TODATE WORLDWIDE.6 PAID APPS HAD OVER500K DOWNLOADS IN 2MONTHS IN US. (IPHONE)
  10. 10. IN-APP PURCHASES INTRODUCED TO ANDROID MARKET LAST MARCH. 17% OF MOST GROSSING APPLICATIONS USE IN- APP PURCHASES NOWBased on 200 most grossing applications in United States – June 2011
  11. 11. 2. SHIFT IN CONTENT LEADERS
  12. 12. STORES BY NUMBER OF APPLICATIONS AND THEIR MONTHLY GROWTH RATES 1. (4%) 2. (10%) 3. (9%) 4. (4%) 5. (9%) 6. (31%)Based on United States – May 2011
  13. 13. STORES BY NUMBER OF APPLICATIONS AND THEIR MONTHLY GROWTH RATES 1. (4%) 1. 2. (10%) 2. 3. (9%) 3. 4. (4%) 4. 5. (9%) 5. 6. (31%) 6. VERY DIFFERENT GROWTH RATES: CHANGING WITHIN THIS YEARBased on United States – May 2011
  14. 14. 3. IMPACT OF COUNTRIES CHANGING RAPIDLY
  15. 15. COUNTRIES BY DOWNLOAD VOLUMES AND THEIR GROWTH IN 6 MONTHS 1. (40%) 2. ? 3. (20%)Based on transactional data from Distimo Monitor and analysis of top 300 free applications – November 2010 & April 2011
  16. 16. COUNTRIES BY DOWNLOAD VOLUMES AND THEIR GROWTH IN 6 MONTHS 1. (40%) SPECTACULAR GROWTH IN CHINA. 2. (75%) TOP 300 GENERATES OVER 1.2M DAILY DOWNLOADS IN CHINA 3. (20%)Based on transactional data from Distimo Monitor and analysis of top 300 free applications – November 2010 & April 2011
  17. 17. 4. CHANNEL FRAGMENTATION: GOING BEYOND MOBILE
  18. 18. IPHONE VERSUS IPAD DOWNLOAD VOLUMES COMPARED IN 6 MONTHS iPad 10% iPhone 90% NOVEMBER 2010Based on transactional data from Distimo Monitor and analysis of top 300 free applications – November 2010 & April 2011
  19. 19. IPHONE VERSUS IPAD DOWNLOAD VOLUMES COMPARED IN 6 MONTHS iPad iPad 10% 14% iPhone iPhone 90% 86% NOVEMBER 2010 APRIL 2011Based on transactional data from Distimo Monitor and analysis of top 300 free applications – November 2010 & April 2011
  20. 20. RECAP
  21. 21. MARKET SHIFTSCONTENT MARKET UPSIDE DOWN1. Traditional business models are no longer in the lead2. App store content leaders of today are not those of tomorrow3. Impact of Asian countries on the high rise4. Mobile content is not phone-only anymore
  22. 22. IMPACT - DISTRIBUTIONWHAT DOES THIS MEAN FOR YOU?• Windows Phone 7 leads in growth this is where you get your head start• There’s more than Apple make sure you are on the Android platform• RIM is a solid grower & less competition you can make a difference here
  23. 23. IMPACT - MONETIZATIONWHAT DOES THIS MEAN FOR YOU?• Seriously consider the ‘free with in-app’ model it offers both volume and good monetization options• Paid one-off does not work well on all platforms on Android, go for in-app or advertising model• There is no one-size-fits-all the best monetization options differ per store
  24. 24. IMPACT – COUNTRIES & DEVICESWHAT DOES THIS MEAN FOR YOU?• The world is not flat Localize your app & marketing efforts• Importance of countries changes rapildy Monitor origin of own and competing volumes closely• Mobile content goes beyond mobile phones On platforms where you are already succesful on phones, go into tablets now
  25. 25. ANALYZE YOUR PERFORMANCE. LOOK AT THE NEIGHBORS. DONT SIT BACK.
  26. 26. THANK YOUFOR ANY ENQUIRIES, PLEASE CONTACT:Vincent Hoogstedervincent@distimo.com Custom in-depth app The free cross- store market reports platform app store for carriers & monitoring tool for manufacturers developers For more info, visit report.distimo.com For more info, visit monitor.distimo.com

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