"The Apps Statbook 2011" Report

This report is a comprehensive survey of the booming global “apps” industry.

Currently worth $7.3 billion this year, the apps market is set to double by the end of next year and then to reach a colossal $36.7 billion by 2015.

It's a phenomenon that has gone hand-in-hand with the ever increasing shipments of smartphones, tablets and internet-enabled TVs.

It has already started to change the face of the Media, Gaming, Software and Consumer Electronics industries.

Like a newly built Chinese city skyline, the apps landscape grows dramatically each day. For this survey, we found 112 launched app stores, 50 up from a count of this time last year, with no doubt many more in the pipeline.

Apple alone has recently passed the mark of having a staggering 500,000 different apps available for download. This only goes to highlight the ease of getting lost among the apps world.

Thankfully, as was the case in the earliest days of the iPad, it appears that there's no foremost best-selling app for any single device. The functionality of devices is so limitless that “killer apps” are completely up to the individual.

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“The Apps Statbook 2011 report has been produced to help you gain a deeper understanding of this market. Through 71 pages, the report gives:

1) Information on how the apps market fits in with key mobile operating systems - Android, Apple iOS, MeeGo (Nokia, Intel), Nokia and Microsoft WP7 (Windows Phone 7).

2) An introduction into the apps market for the tablets sector, including trends and operating systems

3) A snap-shot of recent apps store trends and developments.

4) A wealth of recent data and revenue figures from third parties including best-selling apps, tablet and smartphone shipments, free versus paid apps in store, mobile content revenue and the like.

5) An insight into trends fueling the rise of apps usage:

- How Android now dominates the apps market and is set to hold despite peaking in the US market

- Smart TV widgets and apps usage

- Apps in the workplace (the growing culture of BYOD “Bring-Your-Own-Device”)

- Upcoming devices - a look at smartphone and tablet shipment trends that could significantly affect the apps market.

6) An at-a-glance listing of 112 leading players in apps & TV widget provision including Android Market, Apple Apps Store, GetApp.com, Handango, Kindle AppStore, LG Application Store, Maopao, Nokia Ovi Store, OpenApp market, Samsung Apps, Windows Marketplace etc. This data includes such details as download numbers, device support, runtime support, pricing and payment options.

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Apps are affecting your company and your industry right now. Order your copy today!

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About Rider Research Inc.

Rider Research (www.riderresearch.com) publishes specialist bulletins, newsletters and reports about digital content, online entertainment services and wireless networks. It follows these businesses on a weekly basis through the strategy bulletin, 'The Online Reporter' and 'Internet TV Reporter'.

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Table of Contents for “The Apps Statbook 2011” report

INTRODUCTION - IT’S STILL THE ECONOMY

APP STORE REVIEWS

iOS

- Over 200 million iOS devices sold, 25 million iPads

- iOS Users Buy 61% More Apps,Pay 14% More Per App

- A Look at Apple’s iOS 5

- Onavo Gives iOS Data a Diet

- ESPN Streams to Apple Devices, Anytime, Anywhere

- Adobe Supports Video Streaming to the iPad

ANDROID

- 550,000 New Androids Activated Daily

- Android OS Breakdown Shows Tablet Weakness

- Google Revamps Android Market for Smartphones

- Android Loses Momentum, But Rivals Fail To Cash In

- Android Leads Among US Consumers

- HBO Adds Android & iOS to HBO GO

- Viewster Launches on Android in Europe

- Android: Open OS, Closed Services

MEEGO

- Nokia’s N9 Is Promising, Only MeeGo Device

- Here Comes MeeGo Smart TV 1.2 with Quad Play Capabilities

- MeeGo Charges Ahead in Smart-TV Market

- Nokia: MeeGo Was Never a Viable Tablet OSNOKIA

- Nokia’s Quagmire

- Nokia Aims for Social Location Service

- Nokia Reduces Sales and Profit Forecast

- Nokia Transfers Symbian, Drops Ovi

WP7

- Ballmer: Windows Phone 7 Is ‘Very Small’

- Nokia’s First WP7 Phone Leaked

- Ballmer Promises Windows 8 for 2012, Doesn’t Say Which Quarter

- Microsoft Makes Money on HTC’s Android Smartphones

- France 24 Adds WP7 Support

- Microsoft: One Ecosystem forFuture PCs, Mobiles, TVs

OTHER OSes

- Cisco Launches App Store For Cius Tablet

- HP Would License WebOS to Device Makers

THE TABLET SECTOR

- Who Will Dominate Tablet Market in 2015

- Operating Systems for Tablets

            Contenders

            Pretenders

- Ten Tablet Trends for 2011

- The Differentiator

- Our Perspective

MARKET STATISTICS

- Pew: 35% of American Adults Have Smartphones

- Top Smartphone Platforms Among Subscribers Ages 13+

- Canada: For the Love of Apps!

- US: App Usage Beats Web

- US: Smartphones Outsell Feature Phones

- The iPad Secures 1% of All Web Traffic

- 61% of Corporations Have Employees That Use Tablets

- Mobile Industry Approaching 2% of Global GDP

- 64% of iPhone Users Watch Video

- MLB: Mobile Will Exceed Web Usage in 12 to 18 Months

- TV, Video Are the Kings of Mobile Network Traffic

- More Data Created Every 2 Days Than up Until 2003

- 75% Now Viewing OTT Videos

- 60% of Online Aussies Simultaneously Watch TV

- Wireless Devices with Wi-Fi to Top 1b in 2011

- YouTube: 30% of Videos Get 99% of Views

- The Web Has Become the Netflix Channel

- ARM’s Quarterly Financials Show Growth in Tablets & Smartphones

- Amazon: E-Books Outselling Printed Books

- Filling Your Nook with 1m Downloads

- Freemium Model Still Tops for Mobile Games

- Pandora’s Blood Is Mobile - 42% Are Mobile-Only; Reaches 35% of All US Smartphones

- Angry Birds Downloaded 1m Times Each Day

- Video Views Happen via iOS

- Apple iOS Gets Strong Support Among Apps Developers

- Etisalat, EMS Promise New App Store for RIM

- Xfinity TV Rolls Out to More Mobiles

TOP APPS IN 2011

- Top Q2 2011 Apps for BlackBerry App World

- Top Q2 2011 Apps for Android Market

- Top Q2 2011 Apps for Ovi (Nokia)

- Top Q2 2011 Apps forWindows Phone 7 Marketplace

- Top Q2 2011 Apps for Palm App Catalog

- Top Q2 2011 Apps for Palm App Catalog

- Current Top Apps for iOS as of July 15

MARKET PREDICTIONS

- Mobile Apps: $36.7b Market by 2015

- $49b Tablet Market by 2015

- 91% of Tablets Sold Will Be in North America, Europe, Asia Pacific

- Less than 5% in the US Own a Tablet

- 78% of Tablets to Have Cellular Connection by 2015

- Analyst Increases Prediction to 30m iPads in 2011

- 15b Web-Connected Devices in 4 Years

- 1.3b OTT Viewers by 2016

- Going iOS-Only Is ‘A Pretty Rotten Strategy’

- 178m Mobile Music Subscribers by 2015

- Wi-Fi to Grow 63% By 2016

GLOBAL APP STORES LISTINGS(122 entries)

Local TV Stations Failing to Maximize Fully on Their Allotted Spectrum

From The Online Reporter   

- Mobile TV in a Few Markets in Q4 but Where Are the Devices? 

- Little Compelling Content on Multicasts

- No Electronic Program Guide

- Hiding Their OTA Light under a Basket 

Widespread cord cutting, or not ever connecting it to begin with for the young, is based on two premises. The local TV stations will supply the major networks with their still-popular TV shows, news and major sports plus perhaps some additional targeted TV and mobile TV. The OTT services will supply more movies and recorded TV shows than the average consumer can watch.

The local stations are falling down on their end of the unwritten bargain. 

Anytime the topic of cutting the cord in the States comes up, it’s necessary to report that local TV stations are each broadcasting two to four channels for free to TV sets with over-the-air antennas (OTA). That means consumers can get all the major networks — NBC, Fox, CBS, ABC and CW — for free. The majors don’t dominate TV viewing like they used to, but offer most major sporting events and good but limited news reporting, both national and local. 

A consumer with an OTA antenna and a Blu-ray player or smart TV that gets Netflix and other online video services would find that he can get more than he can watch. It might not be everything he wants when he wants it but it would absorb all his available viewing hours.

Many local stations are reluctant to trumpet their over-the-air channels because they are now collecting cash from the pay-TV companies for transmitting their channel. 

This week we reported that Channel Master is offering a DVR for OTA antennas and it does not require a monthly subscription fee. It has all the DVR functions that might be expected. Perhaps local TV stations should buy a few thousand Channel Master DVRs and OTA antennas and give them away as part of an OTT promotion. Now that might open a few eyeballs. 

 

The FCC wants to take back some of the spectrum that local TV stations have the rights to and auction it off for mobile broadband. If that happens, the local TV stations could lose some of their local channels and, perhaps more importantly, the ability to offer mobile TV. It’s a project they’ve been working on for several years and the National Association of Broadcasters (NAB) says its time is drawing near. It expects that mobile TVs from the likes of Samsung and LG will be in stores by year-end. The mobile TV service, which uses mobile DTV technology, is already available in a number of cities but only on prototype receivers. 

Local TV Stations Challenges

The advent of OTT services like Netflix has made it possible for many consumers to cut the cord and still have more to watch than they can consume. But the local stations have to do their part, and so far they have not.

 

To show they’re serious about using the spectrum they’ve been allotted, local stations have to:

 1. Develop and deploy a full-function electronic program guide in each market by working with TV set makers. Rovi could do it for them. The guide has to show what’s on and what will be on for at least the next seven days if not two weeks. It should provide a brief description and list of characters. What is shown now varies from station to station and in many cases is non-existent. It’s horribly inadequate and, as the cablecos learned by losing subscribers to the satcos, consumers today expect a full-function program guide. Most consumers no longer get TV Guide. 

 2. Develop and offer "must-see" programming on their other channels. If the stations are only going to offer the feeds from the big networks and repeats of weather and news, they are not needed. The pay-TV services could get the feeds directly from the networks and offer their own local news and weather. The NAB suggested developing a network geared toward an African-American audience. That’s good but how about one for Asians and Hispanics? A comedy channel? Children? Religious? Sports? Sci-fi? Divvy up the assignments so each station gets some juicy channels. And, we only need one repeat of the weather and news in each market, not one per station. 

 3. Promote their offerings aggressively. Try giving away OTA antennas and OTA DVRs. Subsidize them by buying thousands of them and offering them at bargain prices to get the process started and make the public aware of OTA. 

 4. Get the mobile-TV venture finished and launched including some nifty mobile-TV sets at low, introductory prices. 

If what they’re showing now is the best they can do, then the FCC should take back some or even all of their spectrum and auction it off for mobile broadband for which there is lots of existing demand.

Would you switch from pay TV to OTA that doesn’t have an electronic program guide and a DVR?

Mobile TV Update

The local stations’ free mobile TV will start appearing in the fourth quarter of 2011 in selected cities, according to the Mobile500 Alliance, which is backed by broadcasters owning over 420 stations. Initially it will include 15 to 20 channels. The Alliance said they will be a mix of local and national offerings plus free and pay services. 

It said over 70 stations are already broadcasting mobile DTV signals. 

 

To be successful, mobile TV needs some attractively priced mobile TVs, perhaps launched at bargain prices. They must realize they are competing for consumer time against texting, browsing and portable media devices that are playing consumers’ favorite music and videos. Launching mobile TV successfully won’t be, as they say, a slam dunk. It’s going to take "must have" devices and "must see" shows. The Alliance hopes that CE makers will start building mobile TV antennas into their devices. It would be attractive to consumers to watch live TV for free on their iPad and iPhone, and not have to carry around two devices, wouldn’t it? 

Colleen Brown, president and CEO of Fisher Communications and president of the board of the Mobile500 said, "We think the more mobile content is out there, the more driven the consumer will be to make sure there is a mobile DTV antenna in ... whatever device they’re purchasing." 

The Alliance has called for the creation of a new company called the National Mobile System (NMS) that would base the service on an open-standard-based architecture. It expects it will "provide service to a variety of distribution and content partners who will market service to customers either as a standalone service or in conjunction with broader services and data services they are already offering." 

Members will be asked to either contribute spectrum or create channels for the national services in exchange for equity in NMS. 

 

It also wants to do a deal with a cellco, which would help launch the service, provide subscriber management and provide a cellular service for interactive features. It said such a deal would help the telcos because the one-too-many broadcasts of mobile TV would reduce the heavy demands that video content is placing on cellular networks. 

The Mobile500 said it’s also talking to private equity groups and other strategic partners to provide investments, technology or content. 

The research firm SNL Kagan said mobile TV "opens up a wealth of opportunities for TV broadcasters to expand their programming options into multiple secondary channels that can be received in the home, in the car and on the move — cell phones, laptops, tablets and more." 

Using Their Spectrum

SNL Kagan has come to the local TV stations’ defense of the use of their spectrum with a report that shows their progress with digital TV broadcasts and multicasting.

It said that at the end of 2010, the number of live digital channels for the 1,196 full-power commercial TV stations covered in its report was 2,518, slightly more than two channels per station. 

The majority of a stations 6 MHz or 19.39 Mbps of digital wireless spectrum is used to produce one 1080i or 720p format HD feed of its primary network during prime time. The additional bandwidth can be used for one or two additional 480i format digital secondary channels at about 3 Mbps per channel and up to four mobile video channels using 1 Mbps to 2 Mbps per channel. 

As of the end of 2010, the number of for-profit stations that were multicasting was 71%, or 849 of the 1,196 that Kagan covered, doubling the channel options for viewers with 1,240 additional digital channels, of which 142 are Spanish-language network affiliates and the others being local sports, weather and 24-hour news. 

Its research also covered 349 noncommercial TV stations, of which 83% are multicast and 66% are broadcast HD programming. Of those total digital noncommercial stations covered, 262 are PBS-affiliate stations. 

ION Media Networks leads the Kagan list with 58 full-power DTV stations, 55 HD stations and 126 digital multicast channels, including Qubo children’s programming, ION Life and Worship.net.

ION chairman, president and CEO R. Brandon Burgess is the president of the Open Mobile Video Coalition (OMVC) and part of the Mobile Content Venture (MCV) that includes NBC Universal and FOX Television.

Pure-play TV station groups Sinclair Broadcast Group and Gray Television ranked second and third, with both groups broadcasting in HD and multicasting on the majority of their stations. Sinclair also has plans to launch mobile DTV channels on nine of its stations and Gray TV is broadcasting mobile video on two Nebraska stations.

Sinclair offers a 24-hour country music network airing music videos and "The Cool TV" music network with live local shows. In Vegas it broadcasts the Spanish language Liberman Broadcasting’s Estrella TV on a secondary channel. 

Another content source that is being offered by some stations is "This TV" network, a joint venture of MGM and Weigel Broadcasting that shows older films and TV shows. 

 

The only Big Four broadcast network to rank in the top 10 was number 7 Comcast/NBC Universal’s Telemundo, which multicasts local weather and news programming and Universal Sports. NBC’s Telemundo O&O stations have also begun broadcasting a political news and commentary Spanish-language network "Inmigrante TV" in some markets. 

Kagan said the Consumer Electronics Association estimated that 31 million HDTV sets were shipped in the States in 2010. Kagan estimates that at the end of 2010 the number of homes with HDTVs was 86.9 million, 75% of total US TV households. It estimated that 51% of pay-TV subscribers received HD signals from their pay-TV service at the end of 2010. That figure does not count OTA users. It estimated that 10% to 12% of households solely receive OTA TV and said the number could increase because of the popularity of OTT services like Netflix. 

It expects average HDTV set prices to fall to the $500-to-$600 range during the next five years and bring mass adoption, with more than 80% to 90% HD penetration of the 117 million to 120 million US TV households. 

Kagan said local programming is a station’s differentiator from pay-TV. It said increased revenue "will come only from leveraging all its channels in HD programming, digital multicasting, Internet streaming and emerging mobile DTV channels." 

 

They also need an electronic program guide, a viable mobile TV service, compelling content for the multicast and mobile channels and a lot of publicity for OTA or they will become just another of the 300 or more channels on pay TV. 

The list of actual and potential means nothing, of course, without readily available and attractively priced devices for viewing and a lot of must see content, not just endless news and weather repeats.

Mobile TV Markets:  Live and Upcoming
Asheville, North Carolina	Mobile, Alabama
Atlanta, Georgia	Montgomery, Alabama
Austin, Minnesota	Nassau, Bahamas
Austin, Texas	New Bedford, Massachusetts
Baltimore, Maryland	New York, New York
Birmingham, Alabama	Newport News, Virginia
Boston, Massachusetts	Norfolk, Virginia
Charlotte, North Carolina	Oakfield, California
Chicago, Illinois	Omaha, Nebraska
Cincinnati, Ohio	Orlando, Florida
Colorado Springs, Colorado	Philadelphia, Pennsylvania
Columbus, Ohio	Phoenix, Arizona
Dallas-Fort Worth, Texas	Portland, Oregon
Daytona Beach, Florida	Portsmouth, Virginia
Denver, Colorado	Providence, Rhode Island
Detroit, Michigan	Pueblo, Colorado
Durham, North Carolina	Raleigh, North Carolina
El Paso, Texas	Roanoke, West Virginia
Fort Pierce, Florida	Rochester, Minnesota
Fresno, California	San Antonio, Texas
Ft. Lauderdale, Florida	San Francisco, California
Greenville, South Carolina	San Jose, California
Hastings, Nebraska	Sarasota, Florida
Houston, Texas	Seattle, Washington
Jacksonville, Florida	Spartanburg, South Carolina
Kearney, Nebraska	St. Petersburg, Florida
Knoxville, Tennessee	St.Paul, Minnesota
Las Vegas, Nevada	Tacoma, Washington
Lincoln, Nebraska	Tampa, Florida
Los Angeles, California	Toledo, Michigan
Lynchburg, West Virginia	Topeka, Kansas
Mason City, Iowa	Visalia, California
Melbourne, Florida	Washington D.C
Miami, Florida	West Palm Beach, Florida
Milwaukee, Wisconsin	Wichita, Kansas
Minneapolis, Minnesota
Sources:
http://www.broadcastingcable.com/article/469098-Mobile500_Eyes_Fall_Launch_for_National_Mobile_DTV_Service.php
http://www.openmobilevideo.com/_assets/images/OMVC-Coverage-Map.jpg

 
 To see 4 free editions of The Online Reporter, the weekly source for competitive intelligence about digital content, online entertainment services, mobile media and wireless networks, visit http://onlinereporter.com/subscribe/

 

Spotify Storms US Shores

From The Online Reporter   
 

- Digital Press Explodes With Joy 

It seemed like nothing could push the Google+ exclusive club out of the press’ inner circles on news Web sites, LinkedIn and Twitter, but as soon as Spotify confirmed it would launch this Thursday morning in the US, there was a massive explosion of thoughts, opinions, reviews and anticipation. 

Spotify launched in the US with a fervor they couldn’t have paid for if they tried, so perhaps the endless months of rumored launches paid off in the end. 

Spotify has hit the US after working its way through Europe and becoming the second largest source of digital music revenues for labels in Europe, according to the company. Spotify has more than 10 million registered users in Europe and around 1.6 million of them pay for the service. During 2010 Spotify paid more than €45 million ($63.9 million) to their licensors. 

 

Spotify has allegedly said it believes it can bring in 50 million US customers during its first year of operations.

 

Spotify’s big features breakdown like this:

 - The Tunes. Users get on-demand access to songs and can create playlists from a library of 15 million tracks. Tracks can also be uploaded from a PC, which Spotify does automatically when it’s opened, and makes the experience like a one-stop music player. 

 - Sharing Everything. Users have created and shared more than 250 million playlists from the service across social sites and a wide variety of third-party sites that aggregate the most popular playlists. The biggies are http://www.sharemyplaylists.com, http://www.bbcify.com and playlist creators like http://www.spotiseek.com. It also has built in sharing with Facebook, Twitter, email and SMS. 

 

 - On the Go. Paying users can install Spotify on iOS, Android and other mobile devices. Mobile apps allow users to sync their playlists and songs from the desktop app and can use an offline mode that gives them access to certain playlists even when 3G and Wi-Fi networks aren’t available. 

 

For its US launch, Spotify is requiring users to either wait for an invite or pay for one of the subscription services, despite all of its US social sharing options which say "no invitation is needed!"

 

The three tiers of the service offered in the US break down like this: 

Spotify Tiers in the US
	Premium	Unlimited	Open
Price (per month)	$9.99	$4.99	Free
15 million tracks	Yes	Yes	Yes
Play and organise your own MP3s	Yes	Yes	Yes
Spotify social	Yes	Yes	Yes
Take your music abroad	Yes	Yes	14 days
Spotify radio mode	Yes	Yes	No
No advertising	Yes	Yes	No
Play local files on your mobile	Yes	No	No
Play music from Spotify on your mobile	Yes	No	No
Offline mode on your desktop	Yes	No	No
Offline mode on your mobile	Yes	No	No
Enhanced sound quality	Yes	No	No
Exclusive content	Yes	No	No
Play Spotify through music systems	Yes	No	No

 

One quick note about the service is that the radio modes don’t seem to have appeared on the US services yet, even for premium users. 

Spotify’s US launch was ripe with partners, including Coca-Cola, Sprite, Chevrolet, Motorola, Reebok, Sonos and The Daily. The companies all launched campaigns to promote their brands and the new service, mostly by giving out codes and invites for the launch.

Ken Parks, chief content officer and managing director of Spotify North America, said: "Spotify was founded as a better, simpler alternative to piracy. So making sure that the people who create the music prosper is hugely important to us. We have full catalogues from all the major labels and a raft of independent labels including those represented by Merlin, which means all of their artists are being fairly compensated for their creativity every time people enjoy music through Spotify." 

US Competition

In the US, Spotify will face some stiff competition, largely from Pandora which just completed an IPO, hit 100 million users, redesigned its site and announced that it reaches 35% of all smartphone users in the US.

As of April, Pandora controlled more than 50% of the market for Internet radio listening. Other big players in the market include Rhapsody, Grooveshark and Last.fm.

Spotify’s big chance in the market may come from its plans to integrate into Facebook and gain a solid userbase within its initial week.

 

One area Spotify will have to make inroads on is the smart devices. Pandora has become a default in the smart TV, STB and Blu-ray platforms. Spotify will need to find a way to link its service to these devices as they become more and more popular, though it may take the approach it did for these in Europe and get involved with pay-TV companies to land on their STBs. 

For now, Spotify has launched and is slowly rolling out to new users as invitations make the rounds. There is a lot of buzz but since invitations appear to be very limited right now, it could face a hurdle of getting and keeping new users simply because of a wait time.

To see 4 free editions of The Online Reporter, the weekly source for competitive intelligence about digital content, online entertainment services, mobile media and wireless networks, visit http://onlinereporter.com/subscribe/