Juniper: Freemium Apps Model to Dominate

May 15th, 2009 by Arjan Olsder Posted in Marketing Strategies | No Comments »

Juniper-research Juniper expects that mobile games and applications with a VAS model will dominate the market by 2014. Revenues could reach $ 14 Billion says their latest report.

To stimulate this market, the report also shows a shift from the classical operator deck sales model toward operator and vendor owned App Stores. This switch doesn’t only benefit developers, but operators will also see their data revenues grow.

To stimulate downloads, developers are expected to rely more on VAS enabled titles where the game itself is given away for free. In return, consumers have to purchase upgrades to keep playing. With these micropayments, developers can enjoy a steady revenue source. Juniper calls this the Freemium Model.

The only challenge that developers will have to face is fragmentation. It is expected that especially the operators will force developers to use their own payment systems.

Nevertheless, as report author Dr Windsor Holden noted, "Although consumers are likely to shift from purchasing content on-portal to app stores offered by vendors and OS providers, those stores in turn represent an opportunity for operators to realise far greater revenues from consumer data usage."

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    Arjan Olsder is the Vice President of Pixalon Studios. Opinions expressed on this publication do not have to represent those of Pixalon Studios.


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