Google Play offers an untapped goldmine for video publishers, while Germany’s video content app monetization presents best-in-class model, according to new research.
Content providers need to consider apps as a key vehicle for delivery, rather than a ‘nice-to-have’ to support web-based video platforms, suggests App Annie, the leading authority in app market data. New report shows that video apps are on the verge of an explosion and European competition is becoming fierce.
The report, which highlights the opportunities for apps in the European video content industry, reveals that, based in App Annie Intelligence data, the UK is leading significantly in both downloads and revenue for video content apps – 50% more than Germany. Google Play is currently an untapped goldmine for publishers, as while its downloads were higher than iOS app store for the top 10 video content apps in the UK in Q3 2014, it contributed a lot less in terms of revenue.The lack of video app publishers taking advantage of the monetization opportunities on Google Play is especially notable in the UK, where 6 of the top 10 video content apps by revenue had no revenue from this store. Even in France and Germany, only around 20% of the revenue from the top 10 video apps came from Google Play. Elsewhere, App Annie suggests other markets can learn from Germany’s successful video content app monetization model as it produces the highest ratio of revenue to downloads.
“While apps can dramatically enhance brand engagement for content providers and many are being used to strengthen viewer retention, they can also be used as a source of new revenue for TV networks,” explains Olivier Bernard, App Annie’s GM of EMEAR. “The opportunity for apps can extend beyond simple content delivery; apps offer functionality that broadcast television cannot match, and viewers are willing to pay for these additional features.”
While the rapid growth and change in the video content sector creates many opportunities for content publishers, it also poses a considerable threat in terms of increased competition. The report reveals that as apps make content distribution more accessible, they are reducing the reliance on broadcasters and TV platforms, driving a surge of new players, from mobile network operators (including EE in the UK and Orange SA in France) to smaller specialist operations, all looking for a piece of the pie.
“The concept of ‘TV’ is becoming increasingly distant from the device on which it is viewed. The method of delivery is also changing, and additional options on top of traditional broadcasting means that distribution is more accessible to a wider range of players. There is no doubt that a strong app is a vital component of successful viewer retention strategies for TV networks and operators, but to come out on top, networks, platforms and other content providers must have an evolving app strategy that matches the inevitable changes in consumer demand,” concludes Bernard.
http://blog.appannie.com/apps-evolution-video-content-distribution-europe/