The latest report by App Annie shows that the UK is leading the race for video content, while Germany seems to have a better grasp on how to make money, with a higher ratio of revenue to downloads. The report examines the video content apps arena to identify the current winners and losers, as well as key trends from the key players, and highlights the opportunities for apps in the European video content industry.
The report reveals that Google Play downloads were higher than iOS app store for the top ten video content apps in the UK in Q3 2014, and it contributed a lot less in terms of revenue. The lack of video app publishers taking advantage of the monetisation opportunities on Google Play is especially notable in the UK, where six of the top ten video content apps by revenue had no revenue from this store. Even in France and Germany, only around 20 per cent of the revenue from the top ten video apps came from Google Play. Elsewhere, App Annie suggests other markets can learn from Germany’s successful video content app monetisation 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,” explained 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.”
“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," concluded Bernard.
The report shows 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.