India becomes sweet spot for app market as thirst for video content, online shopping rises

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One of the main drivers for the increase in video consumption can be credited to Mukesh Ambani’s telecom project Reliance Jio, which disrupted the data market with its cheap internet plans. Jio’s entry had forced bigger players such as Airtel and Vodafone to follow suit quickly, thus bringing down significantly the price of internet data packs in the country.

Amid growing focus on digitisation, cheaper mobile market and the advent of fast internet connectivity in the country, India’s are downloading apps more than ever before. Most of these apps –on both iOS and Android platforms -are focused on video streaming, considering the number of Indians who love browsing for movies and other video content on their mobile devices.

While video content has become extremely popular, shopping apps also experienced strong revenue growth in the first quarter of 2018. According to a report on The Economic Times, based on market data and insights from company App Annie, India is now the world’s fastest-growing market for apps as revenue in Q12018 witnessed a sharp spike.

It should be noted that the country’s citizens download more apps than any other region on the planet. As mentioned earlier, the sharp spike in revenue generated by the app market in India is being fueled by video-streaming apps, indicating that Indians are watching their phones more for streaming video content.

It should be noted that three of the top ten apps downloaded in the country are video-streaming apps, unlike China and US, whether just one streaming app find a place in the top 10 list. A representative of App Annie told ET that India is the fastest growing of any app market, considering its 41 per cent Q1 y-o-y growth.

As per the data, Indonesia ranked second with a revenue growth of 24 per cent while Albania bagged the third position with 23 per cent. Jio effect: Airtel’s Rs. 499 postpaid plan offers free calls, 40GB data, and 1-year Netflix subscription“India was the number one market globally by combined downloads on iOS and Google Play, ahead of the United States (2nd), and China (3rd, iOS only),” the spokesperson told ET.

Customers should note that the two most popular apps, out of the top 10 list, were Netflix and Tinder. While Netflix is a video-streaming app, Tinder is one of the most popular dating apps in the world. Other than that, others apps which find a place in the top 10 list – on the basis of combined downloads- are UC Browser, SHAREit, Vigo Video, Facebook, WhatsApp and Facebook Messenger.

One of the main drivers for the increase in video consumption can be credited to Mukesh Ambani’s telecom project Reliance Jio, which disrupted the data market with its cheap internet plans. Jio’s entry had forced bigger players such as Airtel and Vodafone to follow suit quickly, thus bringing down significantly the price of internet data packs in the country.

As per information obtained from the Department of Telecommunication (DoT), the average data consumption per user grew a mammoth 25 times from 62 MB per month in 2014 to 1.6GB per month in 2017. Mobile shopping apps saw 54% growth in 2017: ReportWhile the rate of revenue growth with regards to the app market was highest, it should be noted that India climbed to 29th position in terms of absolute revenue generated from the sale of mobile apps, estimated at $47 million.

In comparison, the US stood first with $3.2 billion generated from the sale of apps – both Android and iOS - in Q12018; Japan grabbed the second position with $2.7 billion revenue and China ranked third with $2.4 revenue, but only pertaining to iOS. How to reduce your data usage on Android or iPhone: Five tipsExperts believe that India would further climb in the domain, considering the falling prices of mobile phones and data packs. Some of them noted that the Sub-Rs10,000 market for mobiles is rapidly growing in India.

In turn, the number of people who download apps is also increasing rapidly in the country. As per the ET report, India had an estimated 281 million daily internet users in 2017, out of which 62 per cent users are reside in urban areas.

What comes as a shock is that there were no gaming apps in the top 10 categories in India, whereas China had two and US had one. The App Annie report also suggested that 2018 wad the strongest quarter for global app economy growth, breaking the record set in the last quarter of 2017. Other than video-streaming apps, shopping apps also had big y-o-y growth in market share of downloads in Q12018.

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