Entertainment Applications Are Consuming iPhone Users’ Expenditure More Than Before
iPhone users are spending more money by the year on iPhone apps, but one area in particular has steadily grown. Entertainment applications are consuming users’ money more than ever before, according to a survey carried out by Sensor Tower. This category involves streaming applications such as HBO, Hulu and Netflix, whose consumer spending had a 130 % increase over the years.
People are getting more and more drawn towards home streaming services, a phenomenon that has also grown as much as its demand. Most of these applications have gained credit as being one of the biggest applications by revenue in 2016. One such service is HBO which has gained over 2 million users, double its subscribers compared to the year prior to the report.
Netflix has also reported similar success since its inception, earning about $7.9 million in revenue during the first quarter. By the last quarter of 2016, this gross revenue had grown to approximately $58 million. YouTube also experienced subscription growth and subsequent revenue increment, which was from $0.30 to $0.70 per iPhone using this application from the year 2015 to 2016.
Similarly, the social networking category, including applications such as Tinder, grew in terms of revenue from $1.80 to $2.00 since offering application subscriptions in 2015. Music applications such as Pandora and Spotify catapulted the music category growth expenditure from $3.40 to $3.60 and has impacted iPhone’s general gains.
Gaming applications remain the top of the cream of iPhone’s App Store revenues. By 2016, 80% of revenue generated by App Store in the U.S was attributed to game applications. IPhone users recorded an average expenditure of $27, per user, on games only, an increase compared to $25 last year. Despite expenditure on this category increased, installations per device decreased from 10.5 to 9.9 between 2015 and 2016. This could imply that users were spending a larger amount of money on less games rather than a standard amount of money for a standard number of games.
Sensor Tower gathered this information and report based on a survey done on 132 million active iPhones in the U.S from January 1 to December 31 last year.