More than 2 million apps populate the Apple App Store right now and the Google App Store is practically flooded. Between all this who is ruling the roost? IT IS the entertainment apps! Due to increasing adoption of smartphones, the global mobile entertainment market is estimated to reach USD 128.12 billion dollars by 2022, as per Zion Market Research.
A growing consumer base and constant updates in mobile technology are key driving factors of mobile entertainment market. This market includes (on the basis of services) Mobile Games, Mobile Music, Mobile TV and others, out of which mobile gaming and social media are the fastest growing segments of the mobile entertainment market and the top performers are mobile music, mobile personalization, access to premium content and mobile TV.
Rich media content draws major investment from brands and in-app advertising is a major source of revenue for entertainment apps all across the spectrum that are mostly available for free and for no advertisement usage, the user is given the option to update to a premium membership on a specified cost.
The user is also not required to pay for these apps every time, therefore the demand for apps like Temple Run 2, Spotify and Amazon Kindle is surging by the day.
By 2022: The global mobile entertainment market is expected to be worth approx. USD 128.12 Billion
Denoting an annual growth rate of 17.6% between 2017 and 2022
Increasing population → Increasing use of smartphones and availability of smartphones at affordable prices → Increased and easy network accessibility → Sales boost of mobile entertainment apps
In 2016 the mobile game segment accounted for more than 50% share of the global market in terms of revenue due to massive demand for gaming applications.
As per SuperData research Honor of Kings is the highest grossing and top performing mobile game of the year from the start of 2017 till June 30th. Pokemon GO from Niantic that took the world by storm in 2016 and generated more than $1 billion in just 7 months (!) doesn’t feature on the firm’s report.
2017’s TOP 10 grossing mobiles games
- Honor of Kings
- Fantasy Westward Journey
- Monster Strike
- Clash Royale
- Clash of Clans
- Game of War: Fire Age
- Lineage 2 Revolution
- Mobile Strike
- Fate/Grand Order
Asia Pacific (APAC) dominated the mobile entertainment market and continues to with India and China as the leading contributors with their high and rapidly increasing penetration of smartphones and technological advancement. The rate of increasing disposable income in APAC region is giving a major boost to the electronics industry in the region, which explains the calculated prediction of China accounting for 28.34% of global smartphone market in 2018.
As per Mobile First Insights from Opera Mediaworks mobile ad platform of March 2016 the mobile ad. revenue from mobile apps was higher than revenue from mobile web ads in almost all APAC markets (Australia, India, Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam):
As evident from the stats, gaming was the most popular app category in terms of ad. Impressions.
Popular audio/video content streaming services (some of them are subscription based) for smartphones like Netflix, Youtube, Amazon Prime Video, Saavn, Showbox, Hoststar and Cartoon HD are touted to be the most popular entertainment apps in India.
These services are compatible with any streaming device.
To further increase its customer base with enlarged footprint in India, Netflix is doubling down on its investment in the country and in a bid to achieve this has acquired the rights to stream the hugely successful war epics ‘Baahubali: The Beginning’ and ‘Baahubali 2: The Conclusion) for $4 million, which is about INR 25.5 crores!
So, this is where the market is headed, towards entertainment apps of all hues that will also lead to growth of related markets like application making firms/organizations, entertainment websites and smartphones by default. The app economy has found its star performer in entertainment indeed.
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