January 26, 2018
Consumer spending on the top 10 mobile apps for subscription video-on-demand services via the App Store and Google Play rose 77% in 2017 to about $781 million compared to 2016, according to new data from Sensor Tower. Revenue grew almost 88% just in the fourth quarter to $242 million.
As expected, Netflix topped all SVOD apps, generating $290 million in revenue in 2017, up 113% from 2016. Notably, apps from YouTube, Starz and CBS All Access grew even more at 154%, 147% and 128%, respectively.
The data underscores the brand strength of Netflix generating revenue from alternative sources. The SVOD pioneer generated total 2017 revenue of $11.67 billion, including $3.28 billion in Q4.
The report suggests programing plays a big part in app use. HBO Now saw revenue peak to $67.3 million in Q3 when season seven of “Game of Thrones” aired. Revenue declined 21% in Q4 to $53.2 million.
CBS touted Star Trek reboot “Star Trek: Discovery” as a revenue driver. And it didn’t disappoint. Spending increased 105% in Q3 to $4.1 million compared to $2 million in the previous-year period. Revenue grew 33% to $5.4 million into Q4.