NETSIZE WHITE PAPER
Application Store Billing
2011 Edition, Fully Updated with New Market Data
Foreword by Wireless Industry Partnership (WIP)
2011 Edition, Fully Updated with New Market Data
Foreword by Wireless Industry Partnership (WIP)
FOREWORD
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1. EXECUTIVE SUMMARY
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2. THE APPLICATION STORE AVALANCHE
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Different models for different regions
Forces at work
Market dynamics and differences
Ecosystems emerging
New entrants, new opportunities
3. A LONG TAIL OF APP STORES
Money-making models
Billing & payment mechanisms
In-App billing breaks new boundaries
What will turn an application store into a robust and sustainable business?
Business models matter
5. NETSIZE SOLUTIONS FOR APPLICATION STORES
Netsize Direct Billing: the shortest route to operator billing
Netsize Smart Billing: a single platform for all application billing methods
Custom Integration: creating the seamless application store experience
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6. SURVEY BACKGROUND AND METHODOLOGY
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REFERENCES
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About Netsize
Legal Information
Publication Details
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3
FOREWO
ORD
Last June, the WIP App Store Catalog (the most comprehensive listing of mobile app stores available) listed
77 app stores that were available for mobile developers to distribute their products. One year later, that number
has surged to 120. This leap reflects the booming app economy – or is it a growing app bubble?
From the developer perspective, 120 app stores is far more than enough. The pain of submitting to each
store, and customizing the screen shots, titles and descriptions needed for each, is a significant burden, while in
reality, many of them don’t offer enough downloads and sales to justify it. For consumers, the number is also
too high, as many of the stores don’t offer any meaningful differentiation or added value over existing players.
The landscape continues to be dominated by a top tier of platform app stores, including the iTunes App Store,
Android Market, Nokia’s Ovi Store, BlackBerry App World, Windows Phone Marketplace, and so on, largely
thanks to the stores’ prominent placement on devices. But they’re also a natural place for users of the devices to
look for apps. A second tier of operator stores follows – though in many cases, the operator plays for smartphone
users are not particularly strong, and are hamstrung by poor management (for instance, one developer reports
their app – a newsreader – was rejected by an operator because it contained links).
A third group of significant independent stores also plays a role. This includes stores such as GetJar, which
rose to prominence in the pre-smartphone days by distributing J2ME apps, and Appia, which has rolled up
a network of stores and also ran a number of operator decks before smartphones truly emerged. Perhaps the
most interesting player to watch here is Amazon, which recently launched its Amazon Appstore for Android
apps in the US.
The rest of the field is filled with smaller app stores that are either focused on very narrow niches (such as
adult content, a particular geographic region, or a small device brand) or are simply just me-too plays looking
to get in on the app store action.
APP STORE V2.0: THE AMAZON WAY
In March 2011 Amazon rocked the app store space with the announcement that it was taking on the Android Marketplace
with its own app store. While industry watchers debate whether the Amazon Android store is a trial balloon on the way to a
broader strategy that involves tablets and other connected devices, there is little disagreement about Amazon’s fast-follower
advantage. The online retail giant may have been late to the party, but its core app strategy coves all the right bases.
• Amazon counts 137 million active users worldwide
• Users have already entered payment information into their account on the Web, saving them the hassle of inputting this
data on their mobile device
• Amazon has a long track record and deep retail experience, particularly around digital goods as well as physical ones
• Building on its huge active user base, Amazon has meaningful marketing channels to exploit, including its own web site
and email lists
4
So what is needed to build a successful app store? To stand a chance of success an app store must have:
• Global reach
• Easy payment systems in place
• Merchandising expertise
• Marketing channels
Payments are an incredibly important part of this. Perhaps iTunes’ biggest benefit was that it delivered Apple
with tens of millions of credit-card numbers so iPhone users didn’t have to enter in payment information to
make purchases on their phone. Forcing users to enter credit-card numbers or other payment info through their
handset is an enormous barrier to purchase, and one that has held back many platform stores with huge reach.
Operator billing can play a significant role here, in a couple of ways. First, it should give operators one tremendous piece of leverage over other stores by allowing users to bill purchases directly to their phone. The operators’
ability to authenticate their own users and bill them is a big advantage. But this is undermined somewhat by
operators’ moves to extend this billing capability to other stores, in particular the platform stores, where it has
a huge impact on sales. Nokia executives claim that they see a 3.5x increase in sales in markets where operator
billing is introduced.
So the value of the operator as a payment processor is almost at odds with their attempts to grow revenues
through their own app stores. In the days of content decks, this wasn’t as big an issue, because operators were
still able to ensure their deck was front and center with users when they opened a browser or went looking for
content; that’s not the case on most smartphones these days, where the platform store has prominence.
Another significant change has played out over the last several years that’s relevant here, too: revenue shares
have tilted in developers’ and content providers’ favor. Apple’s 70-30 share was revolutionary and has exerted
a tremendous amount of pressure on other app store vendors and payment processors, and has become the de
facto standard in the industry. Depending on the country and operator, that 30% kept by the app store provider could be less than the revenue share kept several years ago in the case of premium SMS or other billing
methods! So while one unit of an operator may be working to shore up outside billing revenues, another team
is looking at how to take the 70% share by providing the app store.
But Apple’s revenue share was revolutionary not just in terms of the level of the share that went to developers,
but the amount of power it put in their hands. Developers flocked to the iOS platform, including thousands
of developers who had no previous mobile experience. Confronted with the reality that apps help sell devices,
other platform providers and operators were forced to follow suit. This has put developers in a somewhat different position with these groups: they’re in heavy demand and subjects of an intense fight for attention.
The kind of get-rich-quick stories seen in the early days of the iTunes App Store, where single developers were
pulling in huge revenues from quickly made, semi-professional apps are becoming much more rare these days.
While the players are more diverse, the market is moving towards the same state as operator content decks were
before: larger companies are floating to the top, driven by their marketing and business development ability
and resources, and they’re buying up successful smaller players along the way.
While the entire ecosystem is still much more open and egalitarian that operator content decks ever were, the
very nature of that openness – and the hundreds of thousands of apps it has created – means that the biggest
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hurdles facing developers big or small are commercial, rather than technical. While getting the app made is no
small feat, getting the app bought or downloaded is becoming more and more difficult.
What developers – particularly small developers – are looking for app stores to do is deliver them users. This
means they are interested in stores with effective reach and marketing and merchandising expertise; this in
turn means that many of the app stores in the market today face an uphill battle to survive. Short-term tricks,
such as paying developers to seed stores with their apps may help initially, but it’s an unsustainable model.
A drop in the number of stores is inevitable, with some consolidation possible, but more likely is the simple
disappearance of weaker players.
What will distinguish the leaders from the also-rans? It’s a tough one to call, but this updated white paper
from Netsize offers us some answers, providing a clearer picture of the app store landscape and insights into
the key capabilities app store providers must build and strengthen.
Carlo Longino is the Community Manager of the Wireless Industry Partnership (WIP),
a company that connects developers to the resources, information and people they need
to be successful. It publishes the WIP App Store Catalog, the most comprehensive listing
of mobile app stores available, and a monthly App Store Report to help developers better
understand the distribution landscape and make decisions about where to focus their resources.
WIP also organizes developer events around the world, and works with developer programs
on a consultancy basis to help ensure their offerings and services align with developer needs.
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1. EXECU
UTIV
VE SUMMARY
The Apple App store model, though popular in regions such as North America, does not dictate the direction this new market is headed. In fact, the proliferation of connected devices and platforms has encouraged
more than 120 companies and providers – including online retail giant Amazon – to establish an application
storefront and get in on the action. More application stores may mean more choice for consumers, but it also
turns up the pressure on application store providers to choose the right business model, one that that will bring
them mass-market success and competitive advantage.
• The dynamics of the mobile applications market will be quite different in different regions and different
business models will be required to make regional app ecosystems viable.
• Providers will need to develop much more than a me-too application storefront modeled on the Apple
blueprint. To succeed they will need to develop and embrace diverse business models and monetization
approaches – ranging from paid apps and apps bundled with subscription offers, to ad-funded schemes and
loyalty programs that offer apps to boost brand awareness – and tailored to consumers in their target market.
• The explosion of application stores, the avalanche of new providers and business models focused on devices
beyond mobile phones, are factors that will continue to drive the growth of application stores over the coming
months. While application stores continue to grow in popularity as a concept in 2011, many suggest that
industry consolidation is inevitable.
• We are not only witnessing a rise in the number and variety of application stores; we are also seeing an
increase in the range of payment and monetization models. To guarantee a seamless user experience and
a ubiquitous quality of service, application store providers must support a variety of payment mechanisms
including operator billing and cards.
• To confirm this, the Netsize Mobile Trends Survey asked industry professionals and practitioners to identify the payment methods and models that will be key for application stores. It found that 85 percent of
respondents indicated that operator billing is a key enabler for application store mass market appeal. Almost
half (46 percent) of respondents believe operator billing alone will dominate; 39 percent also include credit
card billing in the mix. A minority of 15 percent of respondents indicated only credit card billing. E-wallets
were mentioned by 35 percent. 28 percent of respondents deem in-app billing to be a key factor for application store success.
Supporting a variety of payment methods is imperative to success. Popular online payment methods (credit
card and PayPal) will continue to play a role, in particular with application stores that build on existing online
storefronts. But not all consumers have credit cards or belong to loyalty cards schemes that combine collecting
points with making purchases. The successful application store providers and developers, particularly those
targeting burgeoning app markets in Africa and Asia, are inclusive and provide a choice of trusted, easy to use
and ubiquitous payment methods including operator billing.
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2. THE APPPLICATION
N STORE AVALANCHEE
Mobile application stores – destinations offering software and services across a range of handsets, portals,
storefronts and mobile websites – have been around since the late 1990s. However, the ‘app frenzy’ and excitement that has accompanied the rise of the Apple App Store, the proprietary software store launched by Apple
in July 2008 , and has since resulted in the sales of billions of apps for the iPhone, iTouch and iPad devices,
marks an entirely new phase in the distribution and monetization of all things digital.
Sensing a business opportunity, most major platform providers and a mix of mobile operators and independent
providers have since opened their doors for business. The outcome is a new and booming economy – referred
to as the ‘App Economy’ – and an irreversible change in the landscape of mobile application distribution.
In fact, Developer Economics 2011 – an annual report published by market analysis and strategy firm VisionMobile – found that “app stores are the primary go-to-market channel” for almost half (45 percent) of mobile
app developers across the eight major platforms. The landmark report, which surveyed some 900+ developers
across 75 countries, found that use of other application distribution channels has consistently declined across
the board.
The figure below shows a significant drop in distribution via third party aggregators, on-device preloads, and
via developers’ website.
Figure 1 – Application stores dominate across application distribution channels
Even more dramatic is the state of mobile operator portals, destinations that once dominated mobile downloadable content distribution. An executive at a major application house, who is quoted in the Developer Economics
2011 report, suggests mobile operator portals are losing their pull among developers because they lack reach.
“Downloads through operator portals are still less than one million per month on average per operator,” the
executive observes. “Compare that to one billion per month downloads from the Apple App Store.”
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Different models for different regions
The Apple App store model, though popular in regions such as North America, does not dictate the direction this new market is headed. This was the key finding in Sizing Up The Global Apps Market (March 2010),
a milestone report commissioned by independent application store provider and researched and written by
Chetan Sharma Consulting.
Author Chetan Sharma argues that the dynamics of the app market will be quite different in different regions.
As he puts it: “Different business models will be required to make regional [app] ecosystems viable.”
Put simply, providers will need to develop much more than a me-too app storefront modeled on the Apple
blueprint. To succeed they will need to develop and embrace diverse business models and monetization approaches
– ranging from paid apps and apps bundled with subscription offers, to ad-funded schemes and loyalty programs
that offer apps to boost brand awareness – and tailored to consumers in their target market.
Forces at work
There are several forces at play that app store providers must factor into their strategy as they choose their
business models and monetization schemes.
• Ad-funded versus Paid apps: Does your audience have a disposable income it will spend on apps? Or would
it be best to focus on advertising-supported offers?
• On-deck versus Off-deck: Does the target demographic rely on feature phones and look to the mobile
operator for content and apps? Or do smartphone devices – and application stores provided by handset and
platform providers – dominate?
• Local versus Global: Does the audience prefer content in its native language or in tune with local culture?
Or do users demand big names and brands?
• Horizontal versus Vertical: Do users respond to one-size-fits-all apps? Or do they want the cool stuff that
makes up the legendary long tail?
The choices application store providers make are ultimately based on the conditions of the market in which
they operate. The potential scenarios and the significant differences between East and West are outlined below
Market dynamics and differences
The app economy has officially arrived. An April 2011 study from ABI Research reveals that the
worldwide application industry exceeds expectations, with storefronts and providers well on the way
to achieving 44 billion cumulative downloads by 2016. Android and Microsoft Windows Phone 7 are
steadily catching up with Apple as adoption picks up pace and expansion. Another driver is the advance
of smartphone and tablet users, a development that will require application stores to adapt and expand
their offer.
Robust growth is always good news. But we shouldn’t break out the champagne just yet. The business
models are unclear, the market is fragmented and real success is linked inextricably to local and regional
market conditions. The hard truth: It’s not a single market and one-size-fits all app schemes won’t deliver.
Against this backdrop, Sizing Up The Global Mobile Apps Market (March 2010) offers us insights into key
developments impacting the industry that are more pertinent than ever:
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• Feature phones rule in Asia: As a rule downloads and apps revenues are higher from such devices – a trend
that is expected to continue for some time. Sharma’s report forecasts that by 2012 the total number of apps
downloads will grow by 92 percent CAGR to almost 50 billion downloads per year. This figure reflects
two trends: the increasing number of downloads per user per month across the board and the rise in the
number of feature phone users in Asia becoming active app users.
• Ad-funded flourishes in Asia: Predictably, emerging markets in Asia are receptive to advertising-supported
applications, which is why it has traditionally accounted for the lion’s share of app downloads. In contrast,
North America accounted for over half of the total apps revenue generated. The takeaway: Asia downloads
more apps, but they are part of ad-supported offers; North America downloads few apps but pays more
since the majority of apps on offer are paid apps.
• App revenue is moving off-deck: While mobile operators in regions such as Asia Pacific still have a large
share of the apps revenue, platform providers and independent applications store providers are gaining
traction on a global scale. Thus, the balance is shifting to off-deck system and open approaches that enable
developers to sell apps direct-2-consumer.
• Focus builds community: To drive user engagement and loyalty, application stores will focus on specific
customer segments or geographies. An excellent example is Malaysian mobile operator Maxis. In a recent
interview with Telecom TV, the mobile operators will focus on offering local Malaysian apps that are
“more relevant to the Malaysian consumer.” Thus, Maxis aims to be the place to go for “something that
is Malaysian.”
So, will the most successful application stores be on-deck (operator managed) or off-deck (direct-2-consumer)?
Will there be hybrids? Will the prevailing model be paid apps or ad-supported apps? Will “glocal” mobile
operator-run application stores have an edge over approaches that follow a hypermarket model? As with all
nascent markets, the answers at the moment are a mix of ‘all of the above’ and everything in-between.
WHAT APPLE DID RIGHT
Apple was a latecomer to mobile. How has it risen to become a leader in app stores?
• Uniform user experience & payment: Apple used its very successful iTunes model as a springboard for the launch of the App
Store. Discovery, download and payment are all part of a seamless experience and available to the entirely of its user base.
• Robust business ecosystem: Apple also encouraged a complete business ecosystem around the development and monetization of apps, streamlining the process and allowing developers to move software from conception to market in weeks,
not months.
• Attractive revenues for developers: In contrast to mobile operators that pocketed up to 90 percent of revenues for content
and software sold over their networks, Apple introduced a 70/30 revenue share model that jumpstarted interest and
innovation in the mobile apps business.
The result: Apple has so far been able to capture a large percentage of the mobile apps market from within its own walled
garden. However, the race for market dominance is just beginning.
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Ecosystems emerging
Clearly, the mobile app store landscape is in a state of flux. However, several players have been able to grow
their reach, influence and consumer appeal.
Apple: For most developers (and many in the tech press), Apple’s App Store is the number one attraction. The
ability of Apple to control such a significant slice of both market share and mindshare is baffling if we consider
that its ecosystem is even more closed than its operating system. Put simply, Apple controls all software distribution through its App Store. However, the choice of payment mechanism (credit card) effectively by-passes
mobile operators to make monetization for developers a no-brainer.
Android: Coming in a close second is Android. While it does offer significant volume, developers continue
to struggle when it comes to monetization. The problem: payment - or rather a lack of it. To date consumers
have shown little interest in signing up for Google Checkout, the chief payment mechanism supported by the
official Android Marketplace. The lack of suitable payment mechanisms has incentivized other providers –
including Amazon and GetJar – to launch alternative storefronts offering Android applications, and so tilt the
ecosystem in their favor.
Nokia-Microsoft: Nokia’s alliance with Microsoft and its clear intention to move away from the Symbian
platform has likely rendered Symbian (and application stores that cater to the installed base) irrelevant in the
long run. In May 2011, Nokia announced it would drop the Ovi name from its application store and sell
applications under the ‘Nokia’ brand. The move further confuses developers and paves the way for Microsoft
Windows Phone to be the number three mobile operating system. Nokia has traditionally supported mobile
operator payments, a strategy that has allowed it to maintain market share and prowess. However, the NokiaMicrosoft alliance is work in progress, making it difficult to assess its real impact. It will be interesting to see
if the alliance jumpstarts a new phase in application store growth as developers focused on connected devices
such as Microsoft’s X-box games console jump on the application bandwagon.
Table 1 - The smartphone landscape and installed bases
Smartphone landscape summary. Source: Deutsche Bank, company data, April 2011
VENDOR
Symbian
Windows Phone
Android
Limo/Lisp
iOS
RIM
MeeGo
Bada
2010E UNITS(M)
100 m
<2m
> 50 m
~ 10 m
~ 100 m
50 m
0
<5m
INSTALLED BASE (M)
~ 300 m
~ 20 m (incl. WM)
~ 50 m
100 m
~ 100 m
60 m
0
<5m
APP STORE APPS
30 000
11 500
>200,000
n/a
> 300,000
10 000
0
n/a
Beyond applications stores linked to major platform providers there are signs that several players – including
search engine giant Baidu and social networking juggernaut Facebook – are working on Android variants that
could add new variety and complexity to the mobile app store landscape. Interestingly, these players are not
focused on creating entirely new operating systems, but they do aim to cash in on the potential benefits around
having a robust developer (and advertising) ecosystem.
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GETJAR: DATA TRUMPS DISCOVERY
GetJar is the world’s largest, open app store, providing mobile applications across all major handsets and platforms to consumers in more than 200 countries. In addition to distributing content directly to consumers, GetJar also works with a select
number of distribution partners including - but not limited to - Sony Ericsson, Sprint, AT&T, Opera, Vodafone, 3UK, Reliance,
Belgacom and Virgin Mobile. According to GetJar CMO Patrick Mork, GetJar leads in monthly downloads and counts 151,723
apps on offer (as of June 2011). The total includes versions of the applications for different handsets.
But choice and openness is just part of GetJar’s appeal as a marketplace. Another ace in its hand is its sharp focus on providing
mobile analytics and other tools that can help developers better merchandise and monetize their applications. As Mork told
Netsize: “Many app stores don’t actually host apps. They scrape apps from the Android Market and basically re-merchandise
them. Sites like Chomp are not stores in the proper sense since they don’t actually host anything. They are discovery services
but the apps are hosted on Apple or Google servers.”
With so much activity in this space it is little wonder that industry watchers – including Ilja Laurs, founder
and CEO of independent application store t – believe industry consolidation is inevitable. “Just as there were
thousands of search engines in existence ten years ago, app stores will experience consolidation,” Laurs said in
a press statement. “In five years only six major app store players will make it, and in ten years, only two to three
app stores will matter; all other app stores will become app store ghettos.”
New entrants, new opportunities
Sharma’s report, the only one to give us a sense of the size of the global mobile apps market – estimates overall
mobile apps downloads will increase to almost 50 billion by 2012, up from just over 7 billion in 2009.
A Long Tail of application stores is emerging. Indeed, the June 2011 App Store Report – a market overview
published by the Wireless Industry Partnership (WIP), a global organization connecting developers to information, resources and people – counts a whopping 120 application stores.
While handset makers, mobile operators and independent retailers scramble to launch new distribution and
monetization points for smartphone and feature phone apps, new entrants are breaking on the scene with niche
application stores that target netbooks, tablets and even cars.
In May 2010, TomTom, a Dutch maker of personal navigation devices (PND), announced it was gearing
up to open an application store to provide users GPS linked apps and offers. Interestingly, the company’s apps
would target all consumers with navigation apps, not just owners of TomTom devices. Although the storefront
has yet to formally open its doors for business, the announcement confirms that applications will ultimately
reach beyond smartphones and tablet devices.
This view is shared by other industry analysts who anticipate that someday soon all connected devices will
have application store offers. Read between the lines, and this would mean that the app economy is poised for
a new and significant phase of growth as storefronts emerge to offer applications for devices ranging from TVs
to e-readers to digital cameras. This view is supported by market research firm Berg Insight. It estimates that
worldwide shipments of wirelessly enabled consumer electronics products will grow from 22.1 million in 2010
to 271.4 million in 2015, strong growth that represents a massive opportunity for application storefronts aimed
at the consumer electronics industry.
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But who said applications must focus on consumers and the devices that are part of their daily routine? The
opportunities for app stores extend well beyond the ‘digital home’ to the enterprise, where increasing activity
around M2M (machine-to-machine) communications paves the way for app storefronts focused on meeting
the needs of key verticals and stakeholders including telecom service providers, utilities companies, hospitals
and logistics companies.
CONNECTIVITY BREEDS APPS
“Connectivity breeds apps. It is a given that as consumer electronic devices become wirelessly connected, consumers are
looking to download apps on those platforms. Apps download on the iPod have been every bit of a success as they have
been on the iPhone. Similarly, we will see a significant uptick in the apps for devices such as the iPad, telematics platforms
in vehicles, digital cameras, navigation devices, picture frames, weight scales, and the list goes on and on. These apps will
entertain and amuse consumers, analyze data on the devices, connect users with content and friends, and will interconnect
various end-points in the pervasive mobile ecosystem in a much more profound manner.”
From: Sizing Up The Global Mobile Apps Market, Chetan Sharma Consulting, 2010
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3. A LONG TAILL OF APP STORES
Clearly, as the number of active data subscribers across the planet continues to grow and as new forms of
consumer electronics devices come online, we will continue to see the proliferation of apps in many directions
for an even greater range of devices.
The vast majority of application stores are provided by handset manufacturers (Apple, Nokia, Samsung,
Research In Motion (RIM/BlackBerry) etc.), Operating System (OS) developers (Android, Microsoft) and
mobile operators (Vodafone, Telefónica, China Mobile etc.)
But this application store landscape is changing as a plethora of new providers and new business models come
online. This variety is evident when we consider the figure below (Figure 2a), which lists the top 30 application
stores by type.
A closer examination of this list allows us to identify five unique categories of applications stores (see Table 3):
• Device-specific: stores that provide applications and content for a single brand of device
• Platform-specific: stores that focus on a specific operating system or platform (iOS, Android, Windows
Phone, etc).
• Operator-led: stores run by a mobile network operator supporting devices the operator sells to subscribers
with applications and content specific to those devices
• Independent: stores that offer apps and content for any device and any platform, and provide a service
that supports developers with merchandising expertise (capabilities that include discovery, payment and
delivery), as well as hosting services and mobile analytics that allow developers to better understand and
serve their customers
• Directories: stores (primarily cross-device and cross-platform) that aggregate content and applications already
on offer via other application stores, and typically don’t support developers with payment, delivery or hosting
Figure 2a - Top-30 Application Stores by Type Ranked by Number of Apps
0
100,000
200,000
300,000
400,000
Appitalism
Chomp
Appolicious
AppStoreHQ.com
MobiHand
Apple iTunes
Mplayit
Appboy
FastApp Store
Mobspot
Android Market
Androlib
GetJar
iPhoneApps360
Pocket Gear
Mobile2Day
Handago
Nokia Ovi Store
Handster
AppsLib
Blackberry App World
Crackberry
#Microsoft Windows Phone
Mobango
China Mobile Market
Softwareload (T-Mobile)
Pdassi
Amazon appstore
AppBrain
SlideMe
500,000
600,000
700,000
800,000
Device
Platform
Operator
Independent
Directory
Source: Netsize, Application Store Billing, June 2011, www.netsize.com
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Money-making models
But we are not only witnessing a rise in the number and variety of application stores; we are also seeing an
increase in the range of payment and monetization models.
The simplest way to categorize the revenues generated by mobile apps is to divide them between
• paid apps (apps consumers pay for) and advertising app (apps that are advertising supported)
• apps downloaded on-deck (via the mobile operator storefront) and off-deck (via a destination, such as the
Apple App Store or an independent application store that is not run by the mobile operator)
According to the report Sizing Up The Global Mobile Apps Market, the revenue from mobile apps is forecast
to increase to $17.5 billion by 2012, up from $4.1 billion in 2009. However, not all application store providers will benefit from the buoyant growth. Mobile operators, for example, stand to lose more market share to
storefronts run by independents, platform providers and retailers like Amazon. By 2012, off-deck app sales will
account for the lion’s share of mobile apps revenue. Meantime, advertising-supported apps are also expected to
account for a larger percentage of total downloads. By 2012 ad-funded apps will generate 28 percent of total
app revenue. The trend to ad-supported app schemes and offers is further supported by our own analysis (Figure
2b), which lists the top 30 application stores and shows the split between free and paid apps available via each
storefront. In Table 2 Netsize ranks the 70 largest application stores (as of end-May 2011) according to the
number of free and paid apps available via each individual storefront.
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Table 2 - Application store ranking, May 2011
Source: Netsize, Application Store Billing, June 2011, www.netsize.com
RANK
APP STORE
CATEGORY
FREE APPS
PAID APPS
FREE & PAID
APPS
TOTAL APPS
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
Appitalism
Chomp
Appolicious
AppStoreHQ.com
MobiHand
Apple iTunes
Mplayit
Appboy
FastApp Store
Mobspot
Android Market
Androlib
GetJar
iPhoneApps360
Pocket Gear
Mobile2Day
Handango
Nokia Ovi Store
Handster
AppsLib
Blackberry App World
Crackberry
Microsoft Windows Phone Marketplace
Mobango
China Mobile Market
Softwareload (T-Mobile)
Pdassi
Amazon appstore
AppBrain
SlideMe
Samsung Applications Store
LG Application Store
HouseOfPalm
Mobileapps.com
Handmark.com
Directory
Directory
Directory
Directory
Independent
Platform
Directory
Directory
Directory
Independent
Platform
Directory
Independent
Independent
Independent
Independent
Independent
Device
Independent
Independent
Device
Independent
Platform
Independent
Operator
Operator
Independent
Independent
Independent
Independent
Device
Device
Independent
Independent
Independent
361 568
275 753
230 409
247 555
64 584
148 050
111 928
0
87 908
0
118 199
126 061
151 723
63 424
12 099
11 338
6 277
0
25 894
0
8 166
1 295
0
15 841
2 281
0
0
3 827
4 800
0
3 372
6 200
0
0
479
358 147
305 753
303 484
256 377
393 633
244 821
182 199
0
136 424
0
72 390
61 815
0
86 525
64 129
64 369
38 310
0
13 983
0
23 423
18 130
0
0
13 246
0
0
6 470
4 800
0
4 129
0
5 982
0
4 577
0
0
0
0
0
0
0
243 915
0
216 220
0
0
0
0
0
0
0
40 000
0
37 400
0
0
18 000
0
0
15 305
14 729
0
0
9 241
0
0
0
5 937
0
719 715
581 506
533 893
516 883
458 217
392 871
294 127
243 915
224 648
216 220
190 067
187 877
151 723
149 949
76 228
75 707
44 587
40 000
39 877
37 400
31 612
19 425
18 000
15 841
15 527
15 305
14 729
10 297
9 600
9 241
7 501
6 200
5 982
5 937
5 056
Figure 2b - Top-30 application stores ranked by number of free and paid applications
0
100,000
200,000
300,000
400,000
Appitalism
Chomp
Appolicious
AppStoreHQ.com
MobiHand
Apple iTunes
Mplayit
Appboy
FastApp Store
Mobspot
Android Market
Androlib
GetJar
iPhoneApps360
Pocket Gear
Mobile2Day
Handago
Nokia Ovi Store
Handster
AppsLib
Blackberry App World
Crackberry
#Microsoft Windows Phone
Mobango
China Mobile Market
Softwareload (T-Mobile)
Pdassi
Amazon appstore
AppBrain
SlideMe
500,000
600,000
700,000
800,000
Free
Paid
Free & Paid
Source: Netsize, Application Store Billing, June 2011, www.netsize.com
17
Table 2 (continued) - Application store ranking, May 2011
Source: Netsize, Application Store Billing, June 2011, www.netsize.com
RANK
APP STORE
CATEGORY
FREE APPS
PAID APPS
FREE & PAID
APPS
TOTAL APPS
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
neXva
AT&T AppCenter
Turkcell Uygulamala Pazari
M1 AppStore
AndroidPit
Idea Application Store
Appoke
AppUp Center (Intel)
MobileRated
VCAST Apps Storefront (Verizon)
TIM App Store
Kero Mobile
OpenAppMkt
Phoload
Camangi Market
PreCentral.net webOS App Gallery
djuzz
Vodafone 360 Shop
BoostApps
AppComments.com
Palm App Catalog
NokiaTouch.me
bbNATION
Storeoid
Clickgamer
Appbackr
zanox Application Store
Cydia Store
Netfront Widgets
mjelly
whiteapp
Airtel App Central
AppShup
AllBinary Application Store
Maopao
Independent
Operator
Operator
Operator
Independent
Independent
Independent
Device
Independent
Operator
Operator
Independent
Independent
Independent
Independent
Independent
Independent
Operator
Independent
Independent
Device
Independent
Independent
Independent
Independent
Independent
Independent
Independent
Independent
Independent
Independent
Operator
Independent
Independent
Independent
0
26
0
432
0
0
2 842
1 435
2 558
0
0
1 400
0
1 103
694
616
0
210
460
360
298
228
0
0
0
0
63
0
55
54
0
4
1
9
1
0
3 657
0
3 060
0
3 298
445
1 851
0
0
0
0
0
0
113
0
600
291
0
0
0
0
218
0
118
73
0
56
0
0
25
11
13
0
0
4 760
0
3 520
0
3 433
0
0
0
0
1 590
1 560
0
1 320
0
0
0
0
0
0
0
0
0
0
127
0
0
0
0
0
0
0
0
0
0
0
4 760
3 683
3 520
3 492
3 433
3 298
3 287
3 286
2 558
1 590
1 560
1 400
1 320
1 103
694
616
600
501
460
360
298
228
218
127
118
73
63
56
55
54
25
15
14
9
1
Figure 3 - Global Mobile Apps Market Revenue by Type
Revenue
(million US$)
$20,000
$18,000
$16,000
$14,000
$12,000
$10,000
$8,000
$6,000
$4,000
$2,000
$0
2009
2010
Offdeck Paid
Ondeck Paid
Source: Chetan Sharma Consulting, 2010
2011
Offdeck Ad
2012
Ondeck Ad
18
Billing & payment mechanisms
The Apple App Store, which purposely builds on its existing iTunes storefront, requires consumers to pay
for apps using their credit card. While this approach has allowed Apple to capture a significant share of the
market, it also limits its future market reach moving forward.
Indeed, Apple may have been the most aggressive of the off-deck providers, but it can expect stiff competition
from old rivals (Nokia, Microsoft) and nimble newcomers (Google Android, GetJar and Mobango), as well as
an increasing number of mobile operators.
Granted, many of the newer entrants face some challenges before they can deliver a guaranteed and pleasing
user experience. After all, they must cater to a myriad of devices and not just focus on one proprietary operating
system (Apple OS) or one payment method (credit card).
Table 3 - Operator billing by type of application store
APPLICATION STORES OPERATED BY:
STORE TYPE
OPERATOR BILLING
Handset manufacturers
Cross-operator stores, single handset brand,
single platform (typically)
Operator billing for handset models promoted
by the operator
Mobile network operators
On-deck storefronts, multiple handset brands, Operator billing to avoid losing ARPU to credit
multiple platforms
card billing
Platform providers
Cross-operator stores, multiple handset
brands, single platform
Operator billing for handset models promoted
by the operator; for users without credit card
Independent stores
Cross-operator stores, multiple handset
brands, multiple platforms
Operator billing for users without credit card
(e.g. mobile gaming apps for teens)
Aggregators
Cross-operator stores, multiple handset
Operator billing is not applicable since
brands, multiple platforms, but no application destinations typically (1) list applications
hosting
available across stores (to assist with search
and discovery) (2) point users back to the
original application store site to complete the
transaction/download
However, analyst reports argue that the flexibility and creativity required by application store providers and
mobile operators to serve a diverse device landscape and satisfy broad customer segmentation with a wide choice
of apps and an even greater array of payment schemes may sit at the core of their competitive advantage.
In fact, global telecommunications research firm Informa suggests that these application store providers can
differentiate their offers and avoid being viewed as ‘bandwagon-jumping’ if they harness payment methods such as
operator billing to reach a broader audience and support a variety of models including subscription and pay-per-use.
This observation is supported by customer feedback from the application stores Netsize supports with its
solutions, specifically Netsize Smart Billing.
As Netsize remarked in a recent press statement: “Reaching the largest consumer audience and making it easy
to buy content are the key success factors for application stores…. Our Application Store customers observe an
increase of their revenues by 400 percent as soon as they add operator based billing. Having an alternative for
credit card billing clearly removes an obstacle in the purchasing process. On application store visits that use a
19
RETAIL 101 - AGAIN
Ability to offer easy and seamless billing on mobile phones will separate the app-store leaders from the laggards. A singular
focus on any one payment mechanism can limit your audience and your appeal. To guarantee a seamless user experience
and a ubiquitous quality of service, application store providers must support a variety of payment mechanisms. These include
the three most popular operator-based billing methods: Direct Operator Billing, Premium SMS Messaging and WAP Billing
The advantages:
• Choice: When it comes to billing methods, more is better if you want to enable everyone everywhere to buy your apps.
• Trust: A raft of recent survey reveal consumers view the mobile operator as a trusted party able to guarantee secure payments and accurate billing via their mobile phone bill.
• Reach: Not all consumers have credit cards or belong to loyalty cards schemes that combine collecting points with making
purchases. The successful application store is inclusive, and provides the payment scheme that its audience has access to.
mobile device over a Wi-Fi connection we record a 30 percent increase in payment transactions. It proves the
business case for operator-based billing as a successful Internet payment method.”
In-App billing breaks new boundaries
As mobile apps sales and distribution across all major platforms continue to flourish, the need for mobile
billing solutions that give developers and application store providers complete control over the experience has
never been greater. Specifically, companies require solutions that allow them to sell content, virtual goods and
add-ons from within their app.
Against this backdrop, the advance of in-app billing, which allows developers to collect one-time payments
or start ongoing subscriptions within their app using a variety of payment methods, opens up an exciting range
of commercial opportunities.
What’s more, in-app billing enables developers and application store providers to deliver customers a simple
and consistent application payment experience on operator networks as well as over Wi-Fi.
Sensing a business opportunity, Apple and Google have launched their own in-app billing solutions, solutions
that are tightly integrated with their corresponding application stores. However, as more and more platforms
and players enter the market, solutions that work across all application stores will become more attractive.
This is also the view of market research firm Juniper Research. Its Mobile App Stores: Business Models,
Strategies & Market Segmentation 2010-2015 report (June 2010) forecasts that the combined revenues from
apps funded by pay-per-download (PPD), value-added services (VAS, including freemium and subscription)
and advertising will reach $32 billion in 2015.
But the rate of growth is not nearly as interesting as the models that will drive it. For now, most mobile
application revenue is made at the time of purchase, but Juniper expects that in-app billing will increase in use,
enabling incremental revenues. Data revenues, not purchase prices will be the future of the mobile app market.
In Netsize’s view many of the current paid apps will give way to free apps that give access to a wide range of
paid-for services, “tangible” (physical goods, for example public transport and taxi bookings) and “intangible”
20
(digital, like dating services). VisionMobile’s new Developer Economics 2011 report shows that brands are
particularly active in the app space, launching mobile applications as a vehicle to build brand engagement. But
the real story is the realization among an increasing number of brands that applications – if done properly – can
develop into a money-making business.
With this in mind VisionMobile presents its interpretation of the “three-stage journey” brands follow as they
grow their app activity from small scale experiments (“Newbie”), via focused initiatives (“Street Smart”) to a
full revenue generating business (“Connoisseur”).
Figure 4 - The brands´ journey through mobile
Stage
Key question
Driven by
1
Newbie
How can we get
a mobile app?
Digital
Agency
2
Street-smart
How can we use it
to drive our core
business ?
3
Connoisseur
Can we turn this into
a new $$$
generating business
Business
Model
Resourcing
Platforms
Distribution
Free
Digital agency or
specialist house
Apple only
App stores
Marketing
director
Freemium/
ad-funded
Agency &
Apple, Android
external developers and mobile web
D2C, app stores,
partners
Head of
Mobile
Profitgenerating
business
Internal
development
team
All available
channels
All native and
web mobile
Source: Developer Economics 2011 - www.DeveloperEconomics.com - June 2011
To date most marketers have introduced branded applications as a way to become top of mind with their
target market. However, companies are waking up to the opportunity to grow revenues, not just mindshare.
VisionMobile highlights three main mobile revenue streams that brands are looking into:
•
Advertising
•
One-off or subscription-based application sales (attractive if the application adds genuine value)
•
In-app purchases (part of the mobile experience in combination with games, social networking, travel
and sports apps)
Analysis from Screen Digest also underlines the importance of monetization models and the evolution of
in-app schemes. In-app billing encourages higher conversions because users typically do not have to open a
new window to order or pay, which in turn drives revenues. “As the App Store charts put pressure on publishers to lower download prices, the extra monetization options through subscriptions and in-app transactions or
micro-billing will provide valuable additional revenue streams to publishers,” Jack Kent, Screen Digest research
analyst, said in a recent interview with Mobile Marketer.
This is certainly the case in South Korea. Mobile games publishers there have reported that revenues from
micro-billing can equate to 90 percent of the value of download revenues for role playing games and 60 percent
for casual games.
Clearly, application store providers and developers should experiment with various monetization strategies.
In-app billing paves the way for cross-sells, up-sells and a variety of subscription models sorely needed to make
freemium models they success we always knew they could be.
21
4. OPPEN FO
OR BU
USINESS
Finding the right match between business models and payment methods is core to competitive advantage.
Indeed, the avalanche of apps and application stores turns up the pressure on developers and other ecosystem
parties to find ways to make money selling apps. And it’s not just about clinching the first-time sale. A recent
raft of reports reminds us that application store providers and developers also have to think up new commercial
models to encourage the all-important return purchase.
Indeed, iPhone AppStore Secrets, a study from Pinch Media, which analyzed over 30 million downloads
from Apple’s App Store, reports that just 30 percent of people who buy an iPhone application actually use it
the day after it was purchased. And the numbers plunge from there: after 20 days, less than 5 percent of those
who downloaded an application are actively using it.
What will turn an application store into a robust and sustainable business?
Netsize conducted a survey of over 1,000 professionals and practitioners across 67 countries to gain insights
into the requirements for a successful application store. The initial findings (outlined in the Netsize Mobile
Trends Survey - November 2009) report respondents’ views on application store leaders and the enablers that
give them and their offers the competitive edge.
Among the findings:
• The four C’s - Convenience, Compatibility, Choice, and Charging are the top enablers of application store
success. When asked to rate the unique selling proposition of application stores over other software distribution and sales channels, 65 percent of respondents put convenience (“everything in one place”) at the
top of the list. This was followed by compatibility “software applications specific to the device”), choice (“a
long tail of thousands of applications to choose from”), and ease of payment (“operator billing and credit
card payment support, for example”).
• 87 percent of respondents believe Apple App Store will be the most successful. Google’s Android Market is
a distant second (60 percent), followed by Nokia’s Ovi Store (30 percent) and RIM’s BlackBerry App World
(27 percent). Surprisingly, applications stores run by mobile operators finished low in the list with 15 percent.
• The company that owns the application store also owns the customer. The majority of respondents (51
percent) believe that the true market winners own both. Meantime, 42 percent of respondents believe the
mobile operator owns the customer. Handset makers come in second with 26 percent.
22
Figure 5 - Which application stores will be the most successful?
Which application stores will be the most successful?
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Apple App Store
100%
87%
Google Android Market
60%
Nokia Ovi Store
30%
Blackberry/RIM App world
27%
Microsoft
15%
All mobile operator stores
15%
Vodacone 360
11%
All operating system vendor stores
8%
All handset manufacturer stores
8%
GetJar
7%
Sony Ericsson PlayNow arena
Orange Application Shop
All independant stores
Telefonica mstores
Other
6%
5%
5%
2%
2%
Source: Netsize Application Store Billing, Mobile Trends Survey 2010. www.netsize.com
Figure 6 - What makes application stores a destination?
What is it about application stores that
make them a leading destination for apps?
0%
10%
20%
30%
40%
50%
60%
Convenience
(everything in one place)
65%
Compatibility (software applications
specific to the device)
51%
Choice (a Long Tail of thousands of
applications to choose from)
49%
Ease of payment (operator billing and
credit card payment, for example)
48%
Trust (the application store brand
ensures a safe and reliable service)
37%
Cool factor (sales drovent by iconic
devices and early adopters)
Other
70%
26%
3%
Source: Netsize Application Store Billing, Mobile Trends Survey 2010. www.netsize.com
Figure 7 - Who will own the application store customer?
Application Store impact the content value chain.
Who will own the customer?
0%
10%
20%
30%
40%
Whoever operates
the application store
51%
Mobile network operators
42%
Handset makers
Payment providers
Other
50%
26%
9%
8%
Source: Netsize Application Store Billing, Mobile Trends Survey 2010. www.netsize.com
60%
23
Business models matter
Clearly, the first report released in January 2010 confirms the current competitive landscape and bodes well
for Apple, which has so far maintained its first-mover advantage.
But what are the choices available to new providers and what are payment models and mechanisms that will
ensure mass market reach and success?
This new report delves deeper into the survey data collected by Netsize to provide some concrete answers.
The findings:
• Operator-based payments play a major role in the mix
The Netsize Mobile Trends Survey asked industry professionals and practitioners to identify the payment
methods and models that will be key for application stores.
85 percent of respondents indicated that operator billing is a key enabler for application store mass market
appeal. Almost half (46 percent) of respondents believe operator billing alone will dominate; 39 percent also
include credit card billing in the mix. A minority of 15 percent of respondents indicated only credit card billing. E-wallets were mentioned by 35 percent. 28 percent of respondents deem in-app billing to be a key factor
for application store success.
In summary, supporting a variety of payment methods is key to success. Given that some application stores,
such as the Apple App store, build on existing storefronts and direct billing schemes that bypass the mobile
operator, it’s no surprise that the popular online payment methods (credit card and PayPal) will continue to
play a role.
Application store providers and developers, particularly those targeting burgeoning app markets in Africa and
Asia, should not limit their market reach by excluding operator-based payment methods that are frictionless,
seamless and ubiquitous.
Figure 8 - Application store payment methods and models
What are the payment methods and models that will ensure
application stores to achieve mass market appeal and success?
0%
Credit Card only
10%
20%
30%
40%
15%
Operator Billing only
46%
39%
Credit Card and Operator Billing
E-Wallet
In-application Billing
50%
35%
28%
Source: Netsize Application Store Billing, Mobile Trends Survey 2010. www.netsize.com
24
• Support for many business models is critical
Netsize asked respondents to pick the top three business models for application stores. Interestingly, there are
no clear winners. In fact the fragmentation of models, approaches ranging from in-app billing to pay-per-use
to advertising-funded, turns up the pressure on application store providers and mobile operators to pursue a
number of business models simultaneously.
In summary, flexibility is the new business imperative.
Figure 9 – Top three business models for application stores
Select the top 3 business models you believe will be the most successful
for Application Stores in 2010-2011
0%
Pay per MB (Streaming)
Package deals
(bounding, triple play, etc)
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
96%
9%
81%
26%
81%
In-application billing
25%
78%
Pay per use
30%
78%
Unlimited download (flat rate)
31%
70%
Advertising-funded
37%
1st
66%
Subscription
2nd/3rd
41%
Source: Netsize Application Store Billing, Mobile Trends Survey 2010. www.netsize.com
The winner’s circle will include those application store providers that keep their focus sharp and their options
open. Companies risk limiting their audience, reach and appeal if they choose to support one payment mechanism over another. In this new game, providing choice – in apps, models, marketing and billing – is core to
sustainable competitive advantage.
25
5. NETSIZZE SOLUTION
NS FOR APPLICATIO
ON STORRES
Netsize provides a three-tier solution allowing application stores to charge customers and build their business:
Direct Billing, Smart Billing, and Custom Integration.
Netsize Direct Billing: the shortest route to operator billing
Netsize Direct Billing enables application stores to charge end-user payments to the carrier’s mobile phone
subscription bill. Directly integrated with the carrier’s billing platform, Direct Billing provides application stores
with pricing flexibility, secure transactions and ease of use. Because Direct Billing enables a simple “click-tobuy” within the application or application store, the number of succeeded payments is typically higher than
for WAP billing transactions.
Figure 10 - Netsize Direct Billing
Selfcare,
Reporting,
Provisioning
Service Provider
Front-end System
API
Payment Platform
Netsize
Direct Billing
Operator Billing
Platform
Billing Connectors
Backoffice
Operations
Netsize Direct Billing enables operator-based billing over any access network. As a result, application stores
can charge customers on their phone bill even when they connect using Wi-Fi or wired internet (instead of the
mobile operator network). It also allows operator-based billing from a downloaded application, for instance to
enable a new application feature, such as a game level or extension.
Netsize Smart Billing: a single platform for all application billing methods
Netsize Smart Billing combines a variety of operator-based billing and card-based billing methods. Smart
Billing – which aggregates the billing methods of some 160 carrier networks, including direct billing, premium
SMS messaging, WAP as well as major credit cards – provides the application store and app developers with a
single interface for mobile payments and in-app purchases. What’s more, Smart Billing automatically indicates
the range of billing and payment methods that are available for use in a specific country for a given price point,
thus allowing the application store to choose and use the most appropriate payment method.
Netsize Smart Billing supports multiple business models, including pay-per-use, subscription and credit
models. Multiple currencies are also supported.
26
Figure 11 - Netsize Smart Billing for Application Stores
Delivery
Application Store
Activation
Browsing, Ordering
In-app
s Device portal
s Mobile Internet
s Web
Application
Storefront
(Mobile, Web)
Content
s
Netsize
Payment
Smart Billing
Custom Integration:
Pricing Management,
Rights Management,
Reporting, ...
Billing
Operator SMS billing
Operator WAP billing
s Operator Direct billing
s Credit Card
s E-wallet
s
s
Custom Integration: creating the seamless application store experience
In addition to providing billing solutions, Netsize works with application stores to implement specific workflows, procedures and integrations with existing systems. Examples include payment transaction reporting,
management reporting and tools for help desk enablement. Other examples are dynamic catalogue and price
management, and tight integration of the billing transaction with rights management and provisioning systems.
To date Netsize delivers operator-based billing solutions to some of the largest and leading Application
Stores. Sony Ericsson, for example, has chosen Netsize billing solutions for PlayNow™ arena to cover multiple
countries in Europe.
For more information about Netsize Direct Billing, Smart Billing and solutions for application stores please
visit www.netsize.com.
27
6. SURVEEY BACKGRO
OUND AND METHOD
DOLOGY
The Netsize Mobile Trends survey was conducted by Netsize to determine the main trends and drivers behind
the adoption of mobile technology among consumers and businesses globally. In total over 1,000 executives,
mobile professionals and practitioners globally (CxO, VP, Director) participated in this survey.
68.7% of respondents were from Europe, 15% from the Americas, 11.5% from the Asia Pacific region, and
4.8% from Middle East and Africa.
Respondents by Region
Middle East & Africa
4.8%
Asia Pacific
11.5%
South America
5.15%
Western Europe
62.7%
North America
9.9%
Eastern Europe
6.0%
42% of respondents were active in the ICT sectors, 20.9% in entertainment, media and publishing, 12.2%
in marketing services, 6.8% in other professional services, and 18.1% in other sectors, including public administration, financial services, retail and industry.
Respondents by Sector
Government, Public Administration,
Non-profit, Education, etc
4.4%
Other professional services
6.8%
Marketing services
12.2%
Public transport, Travel,
Arts, Culture, Recreation
0.8%
Utilities, Energy
0.3%
Entertainment, Media,
Publishing
20.9%
Financial services
(Banking, Insurance, Real-estate)
4.8%
Industry, Manufacturing, Transport,
Logistics (B-to-B brands)
3.2%
Consumer products, Fast Moving
Consumer Goods (B-to-C brands)
2.2%
Retail, Distribution, E-commerce
1.7%
Healthcare, Pharmaceutical,
Life sciences, Personal care
0.5%
Information & Communication Technology,
Telecommunications
42.1%
28
REFERENC
CES
• ABI Research, Mobile Applications Market Data, April 2011
• Chetan Sharma Consulting, Sizing Up the Global Apps Market, March 2010
• Deutsche Bank, Global Markets Research, Mobile Operating Systems: Choices are Multiplying, April 2011
• Juniper Research, Mobile App Stores: Business Models, Strategies & Market Segmentation 2010-2015,
June 2010
• Netsize, Mobile Trends Survey, The Netsize Guide 2010, February 2010
• Netsize, Application store rankings, May 2011
• VisionMobile, Developer Economics 2011, June 2011
• Wireless Industry Partnership, App Store Report June 2011
About Netsize
Netsize, a Gemalto company, is a leading mobile communications and commerce enabler. Netsize solutions include
Mobile Messaging, with SMS and MMS delivery in 200 countries; Mobile Payment through operator-based billing (Premium SMS, MMS, & WAP) in 28 countries; and Mobile Content Management platforms with publishing & editing tools
to manage messaging services and mobile Internet portals. Netsize manages more than 60 million mobile transactions
per month for 800 customers worldwide, including Fortune 500 companies. With 10 offices worldwide, Netsize provides
both robust technical infrastructure and marketing expertise to support this successful deployment on a global scale.
For more information, please contact Netsize at www.netsize.com/ContactUs
Legal Information
The information supplied in this document is Netsize S.A. sole property and copyright. It is intended for strictly
informational use. It is not binding and might be subject to changes without notice. Any unauthorized disclosure shall
be considered as unlawful. Netsize™ is protected by French, EEC and international intellectual property laws. All other
trademarks quoted are the sole property of their respective owners.
NETSIZE S.A.
6, rue de la Verrerie - 92197 Meudon Cedex - France
Tel: +33 (0) 1 41 27 56 00
Fax: +33 (0)1 41 27 57 00
www.netsize.com
Publication Details
Publication date: June 2011
For more information, please contact:
Alexander Vlasblom, Marketing Communications Director, Netsize
Tel: +31 (0) 20 5047176
Email: [email protected]
© 2011 Netsize - All rights reserved - All other trademarks quoted are the sole property of their respective owners