The Apple App Store is expected to grow its revenue to $30 billion by 2021. (Photo : Reuters.)
A recently published market analysis claim that Apple's iOS App Store will reach revenue of up $30 billion by 2021. By this time, the Cupertino based tech giant will pay out more than $140 billion to app developers.
The report was published by Strategy Analytics. According to the report, while Apple continues to grow it App Store, smaller companies like app developers are also benefitting on its growth.
According to News Factor, the Apple App Store was launched in 2008 and since then the digital store has generated millions of revenue to the company while at the same time providing ample benefits to developers who sell their apps into the platform.
Currently, virtual goods and in-app purchases are responsible for more than 80 percent of generated revenue on the App Store. However, the market is slowly edging towards online contents. Many analysts predict that within the next couple of years, online content purchases will level that of revenues generated by apps through virtual goods and in-app purchases.
Analysts are positive that content creators and owners like Hulu, YouTube, Netflix and Spotify will be the future leader in terms of market revenue. Most of these services are currently offered for free and revenues are generated through the purchase of ad-free premium subscription.
Strategy Analytics chief evangelists of Apps Research Joshua Martin told Computer World, "Simply by enabling a feature Netflix found a new universe of users. The stickiness of subscription services such as Netflix and its contemporaries will see content owners sit atop the highest grossing entertainment apps and longer term amongst the highest grossing apps overall globally."
