A Revenue Opportunity for Application Devs
The film industry realized earlier this year, to some degree of horror, that the apps economy is bigger than Hollywood.
- Globalization: American app studios will see increased competition from international studios building for localized markets at lower per hour rates, according to a study from ContractIQ.
- Cross-Device Development: The smartphone is no longer the de facto app engine as apps for cars, televisions and homes increase in popularity.
- Developer Tools: The prevalence of free application programming interfaces and software developer kits will make it easier to stitch top-end app functionality together.
- Supply & Demand: The demand for apps by startups and enterprises will not abate, but studios will be pressed by both the international and independent markets as profit margins decrease.
- Monetization: The viability of paid app downloads will be mitigated by different business models, including in-app purchases and subscription services.
The industry is now eight years into the Mobile Revolution and seven years since the dawn of the apps economy. It’s a good time to pontificate on the future of app developers and studios and how they mature in the next five-to-10 years.