App store spending is continuing to grow, although not as quickly as in years past. According to a new report from Sensor Tower, the iOS App Store and Google Play combined brought in $39.7 billion in worldwide app revenue in the first half of 2019 — that’s up 15.4% over the $34.4 billion seen during the first half of last year. However, at that time, the $34.4 billion was a 27.8% increase from 2017’s numbers, then a combined $26.9 billion across both stores.
Apple’s App Store continues to massively outpace Google Play on consumer spending, the report also found.
In the first half of 2019, global consumers spent $25.5 billion on the iOS App Store, up 13.2% year-over-year from the $22.6 billion spent in the first half of 2018. Last year, the growth in consumer spending was 26.8%, for comparison’s sake.
Still, Apple’s estimated $25.5 billion in the first half of 2019 is 80% higher than Google Play’s estimated gross revenue of $14.2 billion — the latter a 19.6% increase from the first half of 2018.
The major factor in the slowing growth is iOS in China, which contributed to the slowdown in total growth. However, Sensor Tower expects to see China returning to positive growth over the next 12 months, we’re told.
To a smaller extent, the downturn could be attributed to changes with one of the top-earning apps across both app stores: Netflix.
Last year, Netflix dropped in-app subscription sign-ups for Android users. Then, at the end of December 2018, it did so for iOS users, too. That doesn’t immediately drop its revenue to zero, of course — it will continue to generate revenue from existing subscribers. But the number will decline, especially as Netflix expands globally without an in-app purchase option, and as lapsed subscribers return to renew online with Netflix directly.
In the first half of 2019, Netflix was the second highest earning non-game app with consumer spending of $339 million, Sensor Tower estimates, down from $459 million in the first half of 2018. (We should point out the firm bases its estimates on a 70/30 split between Netflix and Apple’s App Store that drops to 85/15 after the first year. To account for the mix of old and new subscribers, Sensor Tower factors in a 25% cut. But Daring Fireball’s John Gruber claims Netflix had a special relationship with Apple where it had an 85/15 cut from year one.)
In any event, Netflix’s contribution to the app stores’ revenue is on the decline.
In the first half of last year, Netflix had been the No. 1 non-game app for revenue. This year, that spot went to Tinder, which pulled in an estimated $497 million across the iOS App Store and Google Play, combined. That’s up 32% over the first half of 2018.
But Tinder’s dominance could be a trend that doesn’t last.
According to recent data from eMarketer, dating app audiences have been growing slower than expected, causing the analyst firm to revise its user estimates downward. It now expects that 25.1 million U.S. adults will use a dating app monthly this year, down from its previous forecast of 25.4 million. It also expects that only 21% of U.S. single adults will use a dating app at all in 2019, and that will only grow to 23% by 2023.
That means Tinder’s time at the top could be overrun by newcomers in later months, especially as new streaming services get off the ground (assuming they offer in-app subscriptions); if TikTok starts taking monetization seriously; or if any other large apps from China find global audiences outside of China’s third-party app stores.
For example, Tencent Video grossed $278 million globally in the first half of 2019, outside of the third-party Chinese Android app stores. That made it the third-largest non-game app by revenue. And Chinese video platform iQIYI and YouTube were the No. 4 and No. 5 top-grossing apps, respectively.
Meanwhile, iOS app installs actually declined in the first half of the year, following the first quarter that saw a decline in downloads, Q1 2019, attributed to the downturn in China.
The App Store in the first half of 2019 accounted for 14.8 billion of the total 56.7 billion app installs.
Google Play installs in the first half of the year grew 16.4% to 41.9 billion, or about 2.8 times greater than the iOS volume.
The most downloaded apps in the first half of 2019 were the same as before: WhatsApp, Messenger and Facebook led the top charts. But TikTok inched ahead of Instagram for the No. 4 spot, and it saw its installs grow around 28% to nearly 344 million worldwide.
In terms of mobile gaming specifically, spending was up 11.3% year-over-year in the first half of 2019, reaching $29.6 billion across the iOS App Store and Google Play. Thanks to the fallout of the game licensing freeze in China, App Store revenue growth for games was at $17.6 billion, or 7.8% year-over-year growth. Google Play game spending grew by 16.8% to $12 billion.
The top-grossing games, in order, were Tencent’s Honor of Kings, Fate/Grand Order, Monster Strike, Candy Crush Saga and PUBG Mobile.
Meanwhile, the most downloaded games were Color Bump 3D, Garena Free Fire and PUBG Mobile.
Image credits: Sensor Tower
Spotify releases a new exclusive podcast hosted by Kim Kardashian • TechCrunch
Today, Spotify released the first two episodes of the new original podcast “Kim Kardashian’s The System: The Case of Kevin Keith,” narrated by reality TV star Kim K and true-crime producer Lori Rothschild Ansaldi. The series will be available worldwide and is free for all Spotify listeners.
The podcast will have eight episodes in total and explore the story of Kevin Keith, who was convicted of a triple homicide in 1994. For 28 years, Keith has been trying to prove his innocence. Kardashian and Rothschild Ansaldi will work with investigators and experts to demonstrate how the legal system is broken, Spotify wrote in its release.
New episodes of “The System” will be released on Mondays.
Kardashian has been open about her thoughts on the flawed justice system and is currently pursuing a career as a lawyer. She passed the “Baby Bar” exam in California and claims to have plans to open her own law firm in the future.
Kardashian entered a deal with Spotify in 2020 to produce and host an exclusive podcast for the music streaming platform. Her podcast deal joins other celebrities who have inked with Spotify as part of the company’s strategy to expand its exclusive audio offerings. Also, in 2020, Spotify closed a deal with Prince Harry and Meghan Markle.
“The System” podcast launched on the same day that the SEC charged Kardashian for “unlawfully touting a crypt security.” Kardashian settled the case and paid $1.26 million.
Mad Realities’ Devin Lewtan talks onboarding new crypto users through content at TC Sessions: Crypto
If crypto is going to reach “mass adoption,” the industry still has a lot of people it needs to bring on board. Approximately 83% of U.S. adults haven’t ever invested in, traded or used cryptocurrency, according to a Pew Research Center survey conducted this summer.
While many builders and investors agree that it’s still relatively early in the life cycle of blockchain technology, there’s less of a consensus around exactly what applications will catalyze widespread adoption. Consumer-facing crypto startups are trying to build intuitive products that have low barriers to entry, but how will they actually convince people their products are worth using?
Mad Realities, an audience-owned TV production studio, is betting on content and entertainment as the next big on-ramp for the crypto-curious. The company debuted an interactive reality dating show called “Proof of Love” this year that engaged audience members through NFTs and attracted $6 million in seed funding from investors, including celebrity Paris Hilton and crypto venture firm Paradigm.
That’s why we are delighted to have Mad Realities co-founder and CEO Devin Lewtan at TechCrunch Sessions: Crypto in Miami on November 17, where we’ll discuss competitive dynamics in web3 media, how to make web3 products accessible and easy to use, and the opportunities and challenges Lewtan sees ahead as her company tries to recruit Gen Z into crypto.
Before co-founding Mad Realities, Lewtan was a product engineer at Sequoia-backed Clay.run and a founder of the viral Clubhouse show, Shoot Your Shot: NYU Girls Roasting Tech Guys, which went viral on Clubhouse during the peak days of the pandemic.
Lewtan and her co-founders are all in their twenties and remain deeply plugged into digital culture trends, so we’re especially excited to chat with Lewtan about how Mad Realities can continue to stand out in a sea of viral video content.
Take advantage of our special launch pricing — save $250 on General Admission passes while supplies last. Buy your pass today, and then join the web3, DeFi and NFT communities at TC Sessions: Crypto on November 17 in Miami.
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Draymond Green will flip the script at TechCrunch Disrupt • TechCrunch
Golden State Warrior and four-time NBA champion Draymond Green will take the stage at TechCrunch Disrupt on October 18–20 in San Francisco — and get ready for a plot twist.
He will bring his popular podcast, “The Draymond Green Show,” to the Disrupt stage with a very special guest — himself. Turning the tables, Green will hand host duties over to TechCrunch’s own Brian Heater for an interview covering the star athlete’s thoughts on disrupting media, podcasting and sports commentary.
Never one to shy away from straight talk, Green told CNBC of his desire to become a billionaire by the time he hits 40. He’s made several investments along the way, including Smile Direct Club, Blink Fitness gyms, Lobos 1707 (along with LeBron James) and Uninterrupted — part of James’s SpringHill Company.
For his most recent acquisition, Green teamed up with Kevin Love of the Cleveland Cavaliers — along with James and other investors — to purchase a Major League Pickleball team.
We can’t wait to hear more about where Green might focus future investments, his perspective on becoming a disruptive media mogul and how that billionaire status is coming along.
Green’s main gig, of course, is power-forward for the Golden State Warriors. He’s a four-time NBA champion, four-time All-Star, a two-time member of the All-NBA Team, a five-time member of the NBA All-Defensive Team and a two-time Olympic gold medalist.
His off-court career rose to new heights this year when he became the first active NBA player to sign a broadcasting deal with TNT. His podcast, “The Draymond Green Show,” features A-list guests and real talk from Green. He regularly appears on a variety of programs, is a voice-over artist and an executive producer of multiple entertainment endeavors. Green also stars in Prime Video’s “The Sessions: Draymond Green,” “Throwing Bones” and TNT’s “Opening Night.”
TechCrunch Disrupt takes place on October 18–20 in San Francisco. Buy your pass today and find out why Disrupt is the place where startups go to grow.
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