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Nicholas Lovell
Home   >   Analysis and Opinion   >   AppStore revenues will surpass global box office revenues in 2018

AppStore revenues will surpass global box office revenues in 2018

By on January 17, 2018

There is a fascinating analysis by Horace Dediu on the Asymco website.

These are some of his thoughts:

A few observations:

  • Developer payment rate is now above $25 billion/yr. I’ve been notified via Twitter that this is higher than the revenue of McDonald’s Corporation in 2016.
  • During this year iOS users will be spending about $100 million per day for Apps. This was Google’s AdWords revenue rate in 2012.
  • The spending on App Store has been rising steadily, adding about $5 billion/yr since mid 2011.
  • Apps are the biggest component of Apple services and helped that segment gross over $57 billion in 2017, passing Fortune 100 level (net of developer payments).

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In particular, he points out that total money spent on the App Store (not including other ecosystems such as Google) will exceed globab box office gross in 2018. That’s impressive, given that it started at zero a decade ago. And that revenue does not capture all the “off-platform” revenue such as Facebook advertising, Uber fees or AirBnB rental income. It’s a very big number, and points out how significant the app economy has become.

About Nicholas Lovell

Nicholas is the founder of Gamesbrief, a blog dedicated to the business of games. It aims to be informative, authoritative and above all helpful to developers grappling with business strategy. He is the author of a growing list of books about making money in the games industry and other digital media, including How to Publish a Game and Design Rules for Free-to-Play Games, and Penguin-published title The Curve: thecurveonline.com