App stores to cross $122 billion in consumer spending in 2019

App stores to cross $122 billion in consumer spending in 2019 The mobile app economy continues to grow with an estimated $122 billion in consumer spending next year. The burgeoning growth is primarily driven by subscriptions and gaming revenues, and this story is our main highlight in this week’s subscription roundup. In other news, AT&T is planning to use its upcoming subscription service to help cover merger costs. We then cover Apple’s continued subscription push with Apple Music integration on Amazon Echo devices. Lastly, we look at India’s answer to music streaming services like Apple Music and Spotify.  

 

Subscriptions and gaming drive app economy growth

According to mobile intelligence and data firm App Annie, the gross consumer spending on apps worldwide is expected to cross $122 billion in 2019.  This growth is expected to be five times faster than the overall global economy next year, underlining the central role that apps play in our lives today. Consumer spending includes money spent on in-app purchases, primarily in-app subscriptions and mobile gaming purchases. The total time spent on video streaming apps alone is forecast to increase by 110% from 2016 to 2019. No wonder that companies like Apple are trying to make the most of this growing market.

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AT&T wants to use its new subscription service to defray merger costs

Earlier this year, AT&T announced it would be launching its new SVOD platform in 2019. The new streaming service by WarnerMedia is initially slated for release only in the US, but the company wants to eventually make it a streaming giant like Netflix and Amazon Prime Video. The service is expected to have three pricing tiers for subscribers. Can it win the hearts of both consumers and Wall Street? We will wait and watch!

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Apple Music now on Amazon Echo

Apple Music will soon be available on Amazon’s popular Echo devices, giving it a distribution reach beyond Apple’s own hardware. Echo users will be able to use Amazon’s voice assistant, Alexa, to control Apple Music. This is the first time Apple has opened up its music service to a voice control platform other than its own Siri. It’s clear that Apple is doing its best to push its subscription service, but it will face further competition from Spotify who have just announced compatibility with Cortana’s voice commands on Xbox One.
 
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Can JioSaavn be India’s answer to Spotify and Apple Music?

Telecom giant Reliance Jio’s merger with local music streaming player, Saavn, has now officially concluded as the two entities have merged into the JioSaavn service, which is valued at around $1 billion. Has India finally found itself a credible music streaming alternative to Apple Music and Spotify? India is rapidly becoming a hotbed of music streaming services with Spotify also expected to launch soon.
 
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Also read: Apple may be forced to cut its 30% transaction fee on in-app subscriptions