Worldwide consumer spending on digital entertainment (movies, games, apps, and music) grew 30% to $57 billion in 2013, up from $44 billion in 2012, according to a joint report by IHS and App Annie covering France, Germany, Japan, Russia, South Korea, the UK and the US.
Digital games is the biggest content category with consumer spend of $34 billion excluding apps.
- Game apps take market share:
Game apps are beginning to take share away from other digital games. Across the key countries analyzed in this report , spend on game apps alone grew 2.9x from 2012 to 2013, a growth that’s almost triple that of the digital games (excluding apps) category over the same period.
- Japan first for mobile-first:
Mobile apps are now the leading content category in Japan. Japan is the only country where spend is higher on mobile game apps than on any other types of digital games.
Mobile is clearly where gamers are heading, especially if Japan is any indication of global trends.
- The next generation of consoles (Microsoft Xbox One and Sony PlayStation 4) will improve the future market share of digital games excluding apps.
IHS forecasts that 41% of games spend on these devices will be digital by 2017, largely thanks to platform service subscriptions.
For more details, you can download the report here.
According to the “App Annie Index 2013 Retrospective” report, Freemium as a business model continued to be massively successful for a range of app categories in 2013, with games seeing the most money. Indeed, apps with freemium model grew from 86% of game revenue in 2012 to 93% in 2013.
Among other app categories such as music, news or dating, the freemium model has also expanded, becoming prevalent. The amount of non-gaming apps which used a freemium model in 2013 grew from 46% to 57%.
The report is available for download here.
According to research by Newzoo ”Global Games Market Report 2013″, global tablet gaming revenues are expected to increase from $3.7 billion this year to $10 billion in 2016, representing 170% growth in a 3-year period.
The mobile gaming market will be driven by the increasing use of tablet as a gaming platform. In 2016, tablet will account for 42% of the market (vs 23% in 2012).
A new study, conducted in the European market and published by Juniper Research, shows that direct carrier billing is an effective payment method to buy digital content for small value transactions (less than $ 10).
According to the findings of this report, direct carrier billing conversion rate is between 10 and 14 times higher than with a credit card:
Although effective, this payment method generated only 5% of the European digital content revenues in 2012. However, driven by the growth of mobile commerce, direct carrier billing solutions are expected to reach a market share of 18% in 2017.
For more information, you can download the white paper here.
According to International Data Corporation (IDC), tablet market in Western Europe continued to post strong growth in 3Q13 with growth of 38%.
For the full year, tablets shipments are expected to reach over 45 million units with growth of 53.1% for 2013 compared with 2012.
For more information, click here to read the press release.