Mobile video app revenue to double by 2013

MOBILE: Worldwide growth due to popularity of iPhone, Android units, reports say

By Danny King -- Video Business, 12/23/2009

DEC. 23 | MOBILE: Revenue from mobile-video applications will double worldwide over the next four years to $2.42 billion in 2013, with much of the growth taking place next year, according to U.K.-based research firm Screen Digest. Revenue growth from mobile-video apps will exceed that of games applications sales, which will increase 40% by 2013 to $4 billion and mobile-music revenue, which will rise 25% to $4.56 billion, said Screen Digest, which is the parent of Monterey, Calif.-based research firm Adams Media Research.

Such growth will reflect a combination of the continuing popularity of Apple's iPhone and the expected surge in sales of Android phones. With more than a dozen phone models now running on Google's Android system, the percentage of applications downloaded to that platform will jump to 23% in 2014 from 11% this year, ABI Research said in a separate report last week.

"Companies such as Apple and Google have brought a much needed breath of fresh air to the mobile content industry by opening up the ecosystem, providing flexibility to developers and content providers, driving innovation and increasing consumer awareness," said Ronan de Renesse, senior analyst with Screen Digest.

Still, too much innovation might not be a good thing for applications developers because of all of the free apps expected to hit the market. Mobile-applications revenue will start to fall after 2013 on lower prices and more advertising-supported giveaways, according ABI. The drop in the average application price will occur even sooner, says Screen Digest.

"Falling prices combined with exponential mobile data growth will threaten the profitability of stand-alone mobile content services and data access," said de Renesse. "The successes of 2009 could become the nightmares of 2010."