AppAnnieIndexMarketQ22015

VideoStreaming:theTrendContinues

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AppAnnieIndex:MarketQ22015

TableofContents1. TheTechnologyBehindtheIndex

2.ThisQuartersMacroTrends GooglePlayDownloads85%AheadofiOS

CoreGamesHelpTaiwanOvertakeGermanyinGooglePlayRevenue

VideoStreamingAppsSurgeastheCordCuttingTrendContinues

3.TopChartsforCountries&Categories TopCategoriesbyUsage

TopCountriesbyDownloadsandRevenue

TopCategoriesbyDownloadsandRevenue

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AppAnnieIndex:MarketQ22015

1. TheTechnologyBehindtheIndexThe information contained in this report was compiled from App Annie Intelligence, the leading market data solution for the app store economy. To see how our app store download, revenue, demographic and usage estimates can help guide your critical business decisions, take a tour or requestademotoday.

2. ThisQuartersMacroTrends

GooglePlayDownloads85%AheadofiOS

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AppAnnieIndex:MarketQ22015

Followingafamiliarscript,GooglePlaydownloadscontinuedtopullawayfromiOSinQ22015thankstosmartphoneownershipgrowthinemergingmarkets.Atthesametime,theiOSAppStoresperformanceinChinahelpeditmaintainitsrevenueleadoverGooglePlay.GooglePlaysworldwidedownloadsinQ22015wereapproximately85%higherthanontheiOSAppStore,asignificantincreasefromthe70%gapwesawinQ12015.Asweexpected,emergingmarketsledbyBrazil,IndiaandSoutheastAsiancountrieslikeVietnamandthePhilippinesfueledGooglePlaysperformance.ThisappearstobetheresultofincreasingsmartphoneownershipcausedbytheinfluxofinexpensiveyetcapableAndroiddevices.However,itisworthnotingthatsmartphonepenetrationremainsbelow30%inmanyofthesecountries,leavingsignificantroomforgrowth.ThisbodeswellforGooglePlayslongtermgrowthprospects.Meanwhile,iOSAppStoresworldwiderevenueinQ22015wasabout70%higherthanGooglePlays,mirroringwhatwesawinQ12015.Asmentionedinourreport,ChinaSurgesAheadoftheUnitedStatesiniOSDownloads,weexpectedChinasexplosivedownloadperformanceinQ12015tolaythefoundationforfuturerevenuegrowth,andthatpredictionseemstobeholdingtrue.iOSdevelopersarereapingthebenefitsalready,asChinasawthebiggestquarterlysequentialgaininrevenueshareinQ22015.

CoreGamesHelpTaiwanOvertakeGermanyinGooglePlayRevenueGermanyhasbeenastrongmarketforGooglePlaylately,especiallybyrevenue.Infact,GermanyrecentlybecameoneofthefewcountrieswhereGooglePlayrevenueexceedsiOS.ButevenasGermanycontinuestoenjoystellaryearoveryeargrowth,TaiwansperformanceinQ22015helpeditrocketpastGermanyinGooglePlayrevenue.TaiwansperformanceinQ22015wasalmostentirelydrivenbytheGamescategory.AswementionedintheDecember2014TaiwanIndex,coregamesareverypopularinthecountry,especiallyroleplayinggames(RPGs)andmassivelymultiplayeronlineroleplayinggames(MMORPGs).AswesawintheMay2014GamesIndex,marketleadersKunlunGamesand

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AppAnnieIndex:MarketQ22015

ElexTechnologyleveragedthistrendandsawstronggrowththankstothesuccessofMMOsMUMiracleandClashofKings,respectively.Butthecountrysrevenueperformancealsoreceivedamajorliftfrombreakoutcompaniesthatdidnotrankamongthetop50byGooglePlayrevenueforGamesinthepreviousquarter.

ShoryukenandFunPlusGamesawbreakoutperformancesinTaiwaninQ22015.

UsingtheAppAnnieMatrixforGooglePlayGameRevenueinTaiwan,wewereabletoidentifythestrongestbreakoutperformancesoverthepastfewmonths.Asshowninthechartabove,ShoryukenandFunPlusGamesawtwoofthelargestjumpsfromMarchtoMay2015duetoexplosivegrowthfrom3DRPGtitlesAgeofMagicandTopofTanker,respectively.ThesameMatrixalsohighlightedcompanieslikeDinoGamesandJodoGameasRisingStarsthankstotheperformanceoftheirfirstpersonshooters(FPS)andRPGs.Basedonthis,itappearsthatcoregamingtitlescouldcontinuetodriveTaiwansgrowthoverthenextfewquartersaswell.

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AppAnnieIndex:MarketQ22015

VideoStreamingAppsSurgeastheCordCuttingTrendContinuesVideostreamingappshadafantasticquarterastheirperformancevaultedtheEntertainmentcategoryto#4byiOSrevenue.HBONOWandHululedrevenuegrowthintheUnitedStatesasbothappsmadeitintotheWorldwideAppsIndexforMay2015.WithHBONOWsettohitAndroiddevicesinJulyandtherecentlaunchofShowtimesstreamingserviceoniOS,AppleTVandRoku,cordcuttingonamassmarketscalecouldsoonbeareality.However,theUnitedStatesisnttheonlymarketwherethisisthecase.

Note:Q22015datacalculatedasastraightaverageofApril,May,andJune2015.AppsforYouku,iQIYIandTencentVideoheldthetop5spotsbymonthlyactiveusersamongiOS

EntertainmentappsinChina.

VideostreamingappsinChinasawexplosiverevenuegrowththisquarter,headlinedbyYouku,iQIYIandTencentVideo.InQ22015,appsfromthesethreeservicesalsodominatedmonthlyactiveuserrankingsofiOSEntertainmentappsinChina.Theseappsofferabroadrangeofcontent,includingYouTubelikeusersubmittedvideos,regionalandinternationalmovies,popularregionalTVshowslikeTheVoiceofChina,hitinternationalserieslikeGameofThrones

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AppAnnieIndex:MarketQ22015

andevenoriginalprogramming.Last,butcertainlynotleast,theyhavegoneonestepfurtherbysecuringbroadcastingrightsforlivesportsfrompopularinternationalleaguesliketheNBA.Duetothescaleoftheircontentlibrariesandstronghistoricaldownloadsandusagemetrics,wehadexpectedtherevenueperformanceofChinesevideostreamingappstoacceleratethisyear.Butevenwiththatbackground,thegrowthfiguresappearstaggering.iQIYIrecentlyannouncedthatthecompanyspaidstreamingservicehit5millionsubscribers,anincreaseof765%overthepreviousyear.Meanwhile,duringitsfiscal4thquarterresultsannouncement,Youkurevealedthatitsdailyvideoviewseclipsed900millionandconsumerrevenuesfromsubscriptionandpayperviewgrew649%yearoveryear.TheindustrystillhastremendousroomforfurthergrowthandcommercegiantAlibabasupcomingsubscriptionbasedstreamingservice,TmallBoxOffice(TBO),couldexpandthemarketevenfurther.Chinasvideostreamingappscertainlyseemtobeinpositiontocatalyzecordcutting.Withsmartphonesandtabletsquicklybecomingtheprimaryconsumptiondevicesforyoungerdemographics,theycouldevenspawnanentiregenerationofcordskippers.

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AppAnnieIndex:MarketQ22015

3. TopChartsforCountries&Categories

TopCategoriesbyUsage

Note:1.Q22015datacalculatedasastraightaverageofApril,May,andJune2015.2.Sessiondurationmeasuredasthetimefromthefirstnetworkconnectiontothelastnetworkconnectionofthatsession.SocialNetworkingdominatedtimespentperuseroniOSdevicesintheUnitedStates,whileEntertainmentandMusicheldasignificantleadoverothercategoriesinsessionduration.Gamesrankedamongthetop5categoriesonbothmetrics.Itsimportanttonotethattheserankingsaredependentonthenatureofappstorecategories.CategoriesthatrelyondeepengagementsuchasSocialNetworkingandGames,typicallyrankhigherontimespent.Meanwhile,transactionalcategorieslikeFinanceandWeatheraremorelikelytohaveshorterinteractionwindowsandtendtorankloweronthesemetrics.

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AppAnnieIndex:MarketQ22015

Note:1.Q22015datacalculatedasastraightaverageofApril,May,andJune2015.2.Sessiondurationmeasuredastheperiodforwhichauserhasagivenappopenintheforegroundwiththescreenon(doesnotmeasurebackgrounddatausage).

AswehighlightedinInsightsintoAppEngagement,timespentinappsonAndroiddevicesintheUnitedStatescontinuedtobedominatedbySocialandCommunicationapps.Meanwhile,EntertainmentnarrowlybeatoutBooks&Referencefortheleadinsessionduration.

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AppAnnieIndex:MarketQ22015

TopCountriesbyDownloadsandRevenue

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AppAnnieIndex:MarketQ22015

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AppAnnieIndex:MarketQ22015

TopCategoriesbyDownloadsandRevenue

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AppAnnieIndex:MarketQ22015

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AppAnnieIndex:MarketQ22015

AboutAppAnnieAppAnnieisthelargestmobileappintelligenceplatform,providingdevelopersandpublisherswitha360degreeviewofwhattheyneedtoknowtobuild,marketandinvestintheirapps.AppAnnieisusedbyover800,000appstotracktheirperformance,andover400,000mobileappprofessionalsincluding94percentofthetop100publishersrelyonAppAnnietoinformtheirbusinessdecisions,includingElectronicArts,Google,LinkedIn,LINE,Microsoft,Nexon,Nestle,Samsung,Tencent,BandaiNamco,UniversalStudiosandDowJones.AppAnnieisaprivatelyheldglobalcompanyheadquarteredinSanFranciscowith12globalofficesincitiesincludingAmsterdam,Beijing,London,NewYork,SeoulandTokyo.Thecompanyhasraised$94millioninfundingfrome.Ventures,GreycroftPartners,IDGCapitalPartners,InstitutionalVenturePartnersandSequoiaCapital.Formoreinformation,pleasevisit:www.appannie.comorfollowAppAnnieonTwitter:@appannie.

Reportmethodologyandupdatesareavailablehere.

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