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App stores to pass $122B in 2019, with gaming and subscriptions driving growth – TechCrunch

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Mobile intelligence and data firm App Annie is today releasing its 2019 predictions for the worldwide app economy, including its forecast around consumer spending, gaming, the subscription market and other highlights. Most notably, it expects the worldwide gross consumer spend in apps — meaning before the app stores take their own cut — to surpass $122 billion next year, which is double the size of the global box office market, for comparison’s sake.

According to the new forecast, the worldwide app store consumer spend will grow five times as fast as the overall global economy next year.

But the forecast also notes that “consumer spend” — which refers to the money consumers spend on apps and through in-app purchases — is only one metric to track the apps stores’ growth and revenue potential.

Mobile spending is also expected to continue growing for both in-app advertising and commerce — that is, the transactions that take place outside of the app stores in apps like Uber, Amazon and Starbucks, for example.

Specifically, mobile will account for 62 percent of global digital ad spend in 2019, representing $155 billion, up from 50 percent in 2017. In addition, 60 percent more mobile apps will monetize through in-app ads in 2019.

Mobile gaming to reach 60% market share

As in previous years, mobile gaming is contributing to the bulk of the growth in consumer spending, the report says.

Mobile gaming, which continues to be the fastest growing form of gaming, matured further this year with apps like Fortnite and PUBG, says App Annie . These games “drove multiplayer game mechanics that put them on par with real-time strategy and shooter games on PC/Mac and Consoles in a way that hadn’t been done before,” the firm said.

They also helped push forward a trend toward cross-platform gaming, and App Annie expects that to continue in 2019 with more games becoming less siloed.

However, the gaming market won’t just be growing because of experiences like PUBG and Fortnite. “Hyper-casual” games — that is, those with very simple gameplay — will also drive download growth in 2019.

Over the course of the next year, consumer spend in mobile gaming will reach 60 percent market share across all major platforms, including PC, Mac, console, handheld and mobile.

China will remain a major contributor to overall app store consumer spend, including mobile gaming, but there may be a slight deceleration of their impact next year due to the game licensing freeze. In August, Bloomberg reported China’s regulators froze approval of game licenses amid a government shake-up. The freeze impacted the entire sector, from large players like internet giant Tencent to smaller developers.

If the freeze continues in 2019, App Annie believes Chinese firms will push toward international expansion and M&A activity could result.

App Annie is also predicting one breakout gaming hit for 2019: Niantic’s Harry Potter: Wizards Unite, which it believes will exceed $100 million in consumer spend in its first 30 days. Niantic’s Pokémon GO, by comparison, cleared $100 million in its first two weeks and became the fastest game to reach $1 billion in consumer spend.

But App Annie isn’t going so far as to predict Harry Potter will do better than Pokémon GO, which tapped into consumer nostalgia and was a first-to-market mainstream AR gaming title.

Mobile video streaming

Another significant trend ahead for the new year is the growth in video streaming apps, fueled by in-app subscriptions.

Today, the average person consumers more than 7.5 hours of media per day, including watching, listening, reading or posting. Next year, 10 minutes of every hour will be spent consuming media across TV and internet will come from streaming video on mobile, the forecast says.

The total time in video streaming apps will increase 110 percent from 2016 to 2019, with consumer spend in entertainment apps up by 520 percent over that same period. Most of those revenues will come from the growth in in-app subscriptions.

Much of the time consumers spend streaming will come from short-form video apps like YouTube, TikTok and social apps like Instagram and Snapchat.

YouTube alone accounts for 4 out of every 5 minutes spent in the top 10 video streaming apps, today. But 2019 will see many changes, including the launch of Disney’s streaming service, Disney+, for example.

App Annie’s full report, which details ad creatives and strategies as well, is available on its blog.

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Years after its Audm acquisition, The New York Times launches its own audio app

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Several years ago, The New York Times acquired audio journalism app Audm with the goal of using it as the basis of its own audio product. Today, the media company is unveiling the result of that work with the official debut of New York Times Audio — a new mobile app that combines the publication’s top podcasts, like “The Daily,” “The Ezra Klein Show,” “Hard Fork,” “Modern Love,” “The Run-Up,” and others, with those made exclusively for the new platform. These will range from short news briefs to lifestyle content to narrated longform journalism and more.

Plus, thanks to its $25 million acquisition of the production studio behind “Serial,” the app includes content related to that deal, as well. This includes the namesake show itself, plus new shows from the studio like “The Trojan Horse Affair,” “The Coldest Case in Laramie,” and others, as well as “This American Life,” hosted by Ira Glass, among others.

The Times has heavily invested in audio programming as another way to reach its audience, and particularly those who want to engage with its journalism while on the go — like when commuting, walking their dog, running, or traveling, for example. But, typically, NYT’s content is accessed through the third-party platforms where users already stream their podcasts, like Apple Podcasts or Spotify.

Image Credits: NYT

Isolating that content in its own app gives NYT a more direct relationship with its audience, of course, which means it can also collect more data on user behavior, like what people stream and download. (Plus, it could sell its own ads). But its appeal could be limited given that the app will not have a podcast catalog to rival existing platforms, where people already stream their favorite NYT shows, like “The Daily.”

And, with the addition of exclusives to NYT Audio, listeners will have to constantly toggle between apps to hear all the shows they want to tune into — and that’s not necessarily something they’ll want to do.

Even Spotify belatedly realized that its exclusive strategy with podcasts was not paying off. The company once believed it could entice users with big names and could generate its own popular originals by purchasing studios, but it has since pivoted to focus more on being the hosting platform rather than the creator, laying off top podcast execs in the process. NPR also recently canceled four of its podcasts amid its own set of layoffs, which makes for an uncertain market ahead for NYT Audio.

Image Credits: NYT

Still, there could be some attraction for NYT loyalists or those who haven’t already made podcast listening a part of their routines, and will see this new app as a sort of value-add on top of their existing subscription. For the crowd willing to give the app a try, there will be a number of new shows to sample.

For starters, there’s a new morning show called “The Headlines,” hosted by Times reporter Annie Correal, that will catch you up on top stories in 10 minutes or less and let you hear from reporters across NYT’s newsroom. Meanwhile, a new short-form series, “Shorts,” will offer lifestyle content like recipe idea, TV and book recommendations, travel inspiration, and tips for living well.

A feature called “The Magazine Stand” will offer a curated selection of narrated longform journalism from other outlets, which is essentially what Audm had provided.

Image Credits: NYT

The company says that, as a result of this launch, the standalone Audm app will now be sunset. All existing Audm iOS subscribers will automatically transition to NYT Audio at the same monthly or annual rate, so they can continue accessing their existing narrated article content.

There is also a “Daily Playlist” that pieces together top stories, culture stories and other content into an hour or less and a “Reporter Reads” feature where journalists read their own work and share additional context around the story.

“This American Life,” “Serial” and other shows from Serial Productions are also included, along with sports talk shows from “The Athletic.”

Image Credits: NYT

The NYT’s audio app has been in beta testing for roughly a year and half before today’s arrival, and is available to all news subscribers.

The company notes it has no plans to pull any of its existing content from third-party platforms, like Apple or Spotify, as a result of this launch.

The app’s arrifval follows The New York Times’ expanded investment in its own lineup of dedicated mobile apps which now include the popular NYT Cooking app, and, more recently, an updated NYT Games (previously, Crossword), which recently benefitted from its Wordle acquistion.

“We’re thrilled to introduce more people to a new way of experiencing The New York Times,” said Stephanie Preiss, senior vice president and general manager, Audio, in a launch announcement. “Audio journalism has the power to bring stories to life, and our app now allows our audience to take The Times with them — on dog walks, while commuting — in moments when reading isn’t an option. Offering New York Times Audio to news subscribers is just one way we’re adding more value to a Times subscription, in more moments throughout their day,” she added.

The New York Times Audio app is iOS-only.

As of the time of writing, it’s moved up to the No. 5 slot in the U.S. App Store’s News section.

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Roku launches new sports hub dedicated to women’s sporting events

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Roku is giving sports fans what they want—better access to women’s live sports. The company announced Wednesday the launch of Women’s Sports Zone, a new centralized hub that makes it easier for users to search, discover and stream women’s sports programming, from live games, matches and events to on-demand and free content.

Women’s Sports Zone will provide games from the National Women’s Soccer League, US Women’s World Cup, US Women’s Open, the Ladies Professional Golf Association (LPGA) and more. In addition, fans can watch free female-focused sports content on The Roku Channel, such as the Women’s Sports Network, “The Longshots,” “Prodigy” and “Bring It!” among others.

Plus, the newly launched hub comes as the 2023 WNBA (Women’s National Basketball Association) season tips off this Friday, May 19, giving Roku users the ability to stream all games across channels like ESPN, ABC, CBS and CBS Sports Network, along with streaming services like ESPN+, Paramount+, Prime Video and WNBA League Pass.

The Women’s Sports Zone is located within Roku’s sports experience. Users can scroll down to the “Sports” tab on the home screen to find the new hub. They can also search for “women’s sports” or a favorite team or league in Roku Search or by using Roku Voice with the TV remote.

Demand around women’s sports increases year after year, with 30% of U.S. sports fans saying they’re watching more women’s sports than they were five years ago, per a 2022 study by the National Research Group. Additionally, 85% of sports fans — including 79% of men – agree that it’s essential for women’s sports to continue growing in popularity. Just by looking at the WNBA alone, viewership has grown dramatically for the league. Its 2022 season garnered an average of 416,000 viewers across all networks, making it the most-watched full season since 2006.

“The popularity and demand for women’s sports is greater than ever, and at Roku, we continue to commit to elevating this important programming for our customers,” said Kelli Raftery, Roku’s VP of Global Communications, in a statement. “At a time when it is harder than ever to find what you want to watch, our new Women’s Sports Zone makes it easier for fans to get to the content they love, and it arrives just in time for the tip-off of the WNBA season this Friday.”

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Disney+ changes up its release model, plans to launch all ‘Echo’ episodes at once

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President of Marvel Studios Kevin Fiege took to the Disney Upfront stage Tuesday to announce that Marvel’s new Disney+ show, “Echo,” is getting a binge release– a first for an MCU series. Disney+ will drop all Season 1 episodes on November 29.

The “Hawkeye” spinoff stars Alaqua Cox as Maya Lopez, a deaf Native American character who has photographic reflexes. She is the adoptive daughter of supervillain Kingpin (played by Vincent D’Onofrio), however, has been known to fight alongside Daredevil, who wants to take down the criminal underworld. It’s reported that Charlie Cox is returning as Daredevil in “Echo.”

This will be the fourth female-led MCU series on Disney+, joining “Wandavision,” “She-Hulk” and “Ms. Marvel.”

Disney’s new binge strategy is a surprising move for the company and follows in the footsteps of rival Netflix, which swears by its bingeable release model as it drives “substantial engagement, especially for newer titles,” Netflix previously said in its Q3 2022 shareholder letter.

Disney+ tested the waters with its Star Wars titles, starting off with “Obi-Wan Kenobi,” which was the first live-action Star Wars show to premiere with multiple episodes. Meanwhile, “Andor” had a three-episode premiere and was the longest live-action Disney+ season with 12 episodes.

It’s likely the company feels the pressure to change up its release approach after losing four million Disney+ subscribers in the recent quarter, bringing the total to 157.8 million. In the first quarter of 2023, the streaming service saw its first subscriber loss, dropping 2.4 million subs.

Disney plans to save $5.5 billion in overall costs, with $3 billion going toward content savings.

The move also comes as Marvel rethinks its game plan. Fiege previously said the studio wants to be more calculated about which MCU projects get released. It’s been argued that many fans are overwhelmed by the wave of superhero shows, and it’s time for Marvel to slow it down a bit.

“It is harder to hit the zeitgeist when there’s so much product out there — and so much ‘content,’ as they say, which is a word that I hate,” Fiege said in an Entertainment Weekly interview. “But we want Marvel Studios and the MCU projects to really stand out and stand above. So, people will see that as we get further into Phase 5 and 6. The pace at which we’re putting out the Disney+ shows will change so they can each get a chance to shine.”

So, instead of airing episodes week to week, the decision to release “Echo” as a complete season looks to be the beginning of a deliberate effort to gradually reduce the MCU release schedule.

During the Upfronts presentation, Fiege also revealed the official premiere date for “Loki” Season 2, which is coming to Disney+ on October 6.

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