Downloads of paid apps are forecast to generate $57 billion...
Downloads of paid apps are forecast to generate $57 billion total by the end of 2017, but the paid category will represent a shrinking portion of all app downloads by that time, Strategy Analytics said in an industry forecast. By…
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2017, free apps will represent 91 percent of all downloads, the forecast said. The increase in free downloads will push the average selling price of all downloaded apps down to 8 cents by 2017; the decline in revenue from such downloads, coupled with increasing app store maintenance costs, may force app stores to look at alternate revenue streams, Strategy Analytics said. “Paid downloads will remain an important way for smaller developers to monetize their efforts,” said Josh Martin, director-apps research for Strategy Analytics, in a news release. “For developers committed to paid downloads transitioning to tablets may be the smartest way to preserve the business model over the long term. App stores will also see a revenue crunch as more revenue is earned from advertising -- revenue generated outside the bounds of the app store -- and will need to prepare. Newer platforms such as Windows 8, BlackBerry 10, Tizen and Firefox are building their operating systems and storefronts with this knowledge which should go a long way to making them attractive to developers and end users” (http://xrl.us/bn2jc8).