×
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

  • YouTube logo

    YouTube Denies Report That It's Exiting Scripted Dramas, Comedies

    YouTube claims it is not pulling up stakes from original entertainment — denying a report by Bloomberg over the weekend that the Google-owned video service was cancelling plans for “high-end dramas and comedies” and had stopped taking pitches for “expensive” scripted shows. In a statement, a rep said, “YouTube denies the report” and cited its [...]

  • Apple to Launch New Apple TV

    This Is What Apple's New TV Service Will Actually Look Like

    Apple unveiled its much-anticipated video service at a press event in Cupertino Monday, promising a range of originals via its forthcoming Apple TV+ service as well as easy access to third-party video subscription services. But while many of the big names attached to Apple’s video efforts were known beforehand, one significant detail wasn’t: How are [...]

  • Apple Announces Gaming Subscription Service

    Apple Announces Gaming Subscription Service Apple Arcade

    Apple detailed its long-rumored gaming subscription service during a special event it held in Cupertino, California Monday. Apple Arcade is the world’s first game subscription service for mobile, desktop and living room, the company said. With a single subscription, you get access to more than 100 new and exclusive games. The games won’t be on [...]

  • Apple News Announcement

    Apple Unveils $9.99 News Subscription Service Dubbed Apple News+

    Apple unveiled a news subscription service called Apple News+ at its services event in Cupertino, Calif. Monday. The $9.99 service gives paying subscribers access to over 300 magazines as well as select newspapers and premium digital news services. “We believe in the power of journalism and the impact it will have on your lives,” said [...]

  • Katie Drummond - Vice Digital

    Vice Names Katie Drummond Senior VP of Digital

    Katie Drummond, who has worked as an editor in digital media and publishing for a decade, joined Vice Media as senior vice president of Vice Digital. Drummond comes on board to take over many of the duties of Ciel Hunter, who left Vice in January as global head of content for Vice Digital after more [...]

  • Apple Event: How to Watch Live-Stream

    How to Live-Stream Today's Apple Event

    Monday is the coming-out party for Apple’s Hollywood ambitions: After years of trademark secrecy about its plans to stream into video entertainment, the tech giant is set to pull back the curtain at a media event. The live program kicks off at 10 a.m. PT / 1 p.m. ET, on Monday, March 25, from the [...]

  • Google Stadia Is a Net Neutrality

    Google Stadia Is a Net Neutrality Nightmare

    At the Game Developers Conference (GDC) this year, Google announced that it has taken up the long and ever-lengthening dream of the video game streaming service. Meant to replace the hefty, pricey, altogether confounding experience of buying and using various gaming hardware, Google Stadia will run video games on Google’s own hardware in a server [...]

More From Our Brands

Access exclusive content