You will be redirected back to your article in seconds

Subscription Video Services Lift Global App Spending

Mobile users around the world keep spending more money on apps every quarter, and one of the big drivers of app revenue growth are subscription video services like Netflix and HBO Now. That’s according to new data from app analytics specialist App Annie, which published its Q3 market index report Monday.

Worldwide iOS and Android app revenue reached $17 billion in Q3 of 2017, according to that report. That’s 28% year-over-year growth, and far surpasses the 8% growth in app downloads App Annie tracked for the same time frame. In other words: People aren’t just downloading more apps, they’re also increasingly spending money on those apps.

A big chunk of that revenue growth is being driven by entertainment apps, which saw a 30% revenue growth on iOS and a 45% growth on Android/Google Play. “On iOS, Tencent Video experienced the highest quarter over quarter share change in the Entertainment category in Q3 2017, followed by Youku and Starz. On Google Play, HBO Now had the highest share change followed by Netflix and Starz,” said App Annie industry analysis manager Matt Miller in a blog post.

Starz is likely experiencing an “Outlander” bump here, with users flocking to the network’s subscription app to watch Claire’s latest time travel adventures. But the growth of Tencent and Youku for Apple is equally interesting. For one thing, Apple has had some recent troubles in China, with iPhone sales declining over the past few quarters, and regulators now cracking down on the Apple Watch’s wireless connectivity.

But growth in Tencent and Youku revenue also seems to indicate that Chinese consumers are increasingly willing to pay for subscriptions, something that Google isn’t profiting from in the foreseeable future. The search giant left China in 2010, and has since been unable to sell apps and content to Chinese consumers.

More Digital

  • Alibaba Buys 8% Stake in Chinese

    Alibaba Buys 8% Stake in Chinese Video Platform Bilibili

    Alibaba has purchased an 8% stake in the Chinese online video platform Bilibili, the official Xinhua news agency reported. Bilibili is one of China’s top video streaming and entertainment platforms, with about 92 million monthly active users and 450 million page-views per day. Founded in 2009, it was listed on the NASDAQ last March. Alibaba’s [...]

  • Clevver-Logo

    Hearst Magazines Buys Clevver's Pop-Culture YouTube Channels After Defy's Demise

    Hearst Magazines has snapped up Clevver, a network of female-skewing lifestyle and pop-culture news YouTube channels that had been owned by now-defunct Defy Media. Clevver was left homeless after Defy’s sudden shutdown in November; its principals said at the time they were looking for a new home. Hearst Magazines sees a digital fit with Clevver’s [...]

  • "Brother" -- Episode 201-- Pictured (l-r):

    CBS Interactive's Marc DeBevoise on Streaming Boom, Content Strategy, and Apple

    Not everyone wants or needs to be Netflix to succeed in the streaming space. And not everyone sees Apple’s enigmatic new service as a threat. Even as rival streaming services offer gobs of content, CBS Interactive’s president and COO Marc DeBevoise sees the company’s targeted original programming strategy continuing to attract viewers to its All [...]

  • Rhett-Link-Good-Mythical-Morning

    Rhett & Link's Mythical Entertainment in Talks to Acquire Smosh (EXCLUSIVE)

    Smosh, the YouTube comedy brand left stranded after parent company Defy Media went belly-up, may be about to get a new business partner. Mythical Entertainment, the entertainment company founded by top YouTube comedy duo Rhett & Link, has been in talks about acquiring the Smosh brand, sources told Variety. Multiple potential buyers came forward to [...]

  • Pokemon Go

    Proposed 'Pokémon Go' Lawsuit Settlement May Remove Poké Stops, Gyms

    A proposed settlement in the class action lawsuit against “Pokémon Go” developer Niantic could remove or change a number of Poké Stops and Gyms in the popular augmented reality game. The proposed settlement was filed in a California court on Thursday and applies to anyone in the U.S. who owns or leases property within 100 meters [...]

  • Skyline of Doha at night with

    Qatar's beIN Rallies Support From U.S. Companies Against Pirate Broadcaster beoutQ

    Qatari powerhouse beIN Media Group has rallied support from American sports and entertainment entities, including Discovery and Fox, behind its request that the U.S. government place Saudi Arabia on its watch list of top intellectual property offenders. The Doha-based broadcaster, a state-owned spinoff of Al Jazeera news network, accuses the Saudi government of harboring pirate broadcaster [...]

More From Our Brands

Access exclusive content