The document discusses four major shifts occurring in the mobile content distribution market: 1) New business models like in-app purchases are becoming a key revenue driver, 2) Traditional content leaders are changing rapidly, 3) The impact of growth in Asian countries like China is huge, and 4) Mobile content is fragmenting across multiple devices beyond just phones. These shifts mean developers must expand to new platforms and stores, consider new monetization models tailored to each store, localize their efforts, and closely monitor performance and competitors across countries and devices.

1. MARKET SHIFTS IN
CONTENT DISTRIBUTION
Vincent Hoogsteder, Co-founder & CEO Distimo

2. ABOUT DISTIMO
1. Distimo collects all publicly available data from all major application
stores worldwide, and enriches it with transactional data.
2. The data is thoroughly analyzed and important trends and insights are extracted.
3. Insights are provided to developers and device manufacturers

3. Today:
FOUR MAJOR MARKET SHIFTS:
WHAT DOES THIS MEAN FOR YOU?

4. 1. NEW BUSINESS MODELS
BECOME KEY REVENUE DRIVER

5. APP STORE FOR IPHONE:
OF ALL APPLICATIONS FEATURE
IN-APP PURCHASES
Based on United States – April 2011

6. Paid with
In-App
22%
Paid only
39%
Free with
In-App
OF REVENUE COMES FROM APPS 39%
WITH IN-APP PURCHASES
Based on 200 most grossing applications in United States – April 2011

7. 70%
60%
61%
50%
40%
36%
30%
THAT’S UP FROM
20%
36% LAST JUNE.
10%
0%
2010-06 2011-04
REVENUE FROM IN-APP PURCHASE SUPPORTING APPS
Based on 200 most grossing applications in United States – June 2010 & April 2011

8. 1,000-49,999 ≥50,000
4.5% 0.1%
100-999
16.1%
ANDROID MARKET:
0.1% OF PAID APPS
SOLD OVER 50K TIMES
<100
79.3%
PROPORTION OF PAID DOWNLOADS PER DOWNLOAD TIER
Based on worldwide Android Market downloads since launch of apps present in Android Market United States April 2011

9. 2 PAID APPS HAD OVER
500K DOWNLOADS TO
DATE WORLDWIDE.
6 PAID APPS HAD OVER
500K DOWNLOADS IN 2
MONTHS IN US. (IPHONE)

10. IN-APP PURCHASES
INTRODUCED TO ANDROID
MARKET LAST MARCH. 17%
OF MOST GROSSING
APPLICATIONS USE IN-
APP PURCHASES NOW
Based on 200 most grossing applications in United States – June 2011

11. 2. SHIFT IN
CONTENT LEADERS

12. STORES BY NUMBER OF APPLICATIONS
AND THEIR MONTHLY GROWTH RATES
1. (4%)
2. (10%)
3. (9%)
4. (4%)
5. (9%)
6. (31%)
Based on United States – May 2011

13. STORES BY NUMBER OF APPLICATIONS
AND THEIR MONTHLY GROWTH RATES
1. (4%) 1.
2. (10%) 2.
3. (9%) 3.
4. (4%) 4.
5. (9%) 5.
6. (31%) 6.
VERY DIFFERENT GROWTH RATES:
CHANGING WITHIN THIS YEAR
Based on United States – May 2011

14. 3. IMPACT OF COUNTRIES
CHANGING RAPIDLY

15. COUNTRIES BY DOWNLOAD VOLUMES
AND THEIR GROWTH IN 6 MONTHS
1. (40%)
2. ?
3. (20%)
Based on transactional data from Distimo Monitor and analysis of top 300 free applications – November 2010 & April 2011

16. COUNTRIES BY DOWNLOAD VOLUMES
AND THEIR GROWTH IN 6 MONTHS
1. (40%)
SPECTACULAR GROWTH IN CHINA.
2. (75%) TOP 300 GENERATES OVER 1.2M
DAILY DOWNLOADS IN CHINA
3. (20%)
Based on transactional data from Distimo Monitor and analysis of top 300 free applications – November 2010 & April 2011

17. 4. CHANNEL FRAGMENTATION:
GOING BEYOND MOBILE

18. IPHONE VERSUS IPAD
DOWNLOAD VOLUMES COMPARED IN 6 MONTHS
iPad
10%
iPhone
90%
NOVEMBER 2010
Based on transactional data from Distimo Monitor and analysis of top 300 free applications – November 2010 & April 2011

19. IPHONE VERSUS IPAD
DOWNLOAD VOLUMES COMPARED IN 6 MONTHS
iPad iPad
10% 14%
iPhone iPhone
90% 86%
NOVEMBER 2010 APRIL 2011
Based on transactional data from Distimo Monitor and analysis of top 300 free applications – November 2010 & April 2011

20. RECAP

21. MARKET SHIFTS
CONTENT MARKET UPSIDE DOWN
1. Traditional business models are no longer in the lead
2. App store content leaders of today are not those of tomorrow
3. Impact of Asian countries on the high rise
4. Mobile content is not phone-only anymore

22. IMPACT - DISTRIBUTION
WHAT DOES THIS MEAN FOR YOU?
• Windows Phone 7 leads in growth
this is where you get your head start
• There’s more than Apple
make sure you are on the Android platform
• RIM is a solid grower & less competition
you can make a difference here

23. IMPACT - MONETIZATION
WHAT DOES THIS MEAN FOR YOU?
• Seriously consider the ‘free with in-app’ model
it offers both volume and good monetization options
• Paid one-off does not work well on all platforms
on Android, go for in-app or advertising model
• There is no one-size-fits-all
the best monetization options differ per store

24. IMPACT – COUNTRIES & DEVICES
WHAT DOES THIS MEAN FOR YOU?
• The world is not flat
Localize your app & marketing efforts
• Importance of countries changes rapildy
Monitor origin of own and competing volumes closely
• Mobile content goes beyond mobile phones
On platforms where you are already succesful
on phones, go into tablets now

25. ANALYZE YOUR PERFORMANCE.
LOOK AT THE NEIGHBORS.
DON'T SIT BACK.

26. THANK YOU
FOR ANY ENQUIRIES, PLEASE CONTACT:
Vincent Hoogsteder
vincent@distimo.com
Custom in-depth app The free cross-
store market reports platform app store
for carriers & monitoring tool for
manufacturers developers
For more info, visit report.distimo.com For more info, visit monitor.distimo.com