Global Mobile Consumers Spent 25% More Time Streaming in Q2 2020 Than Q4 2019

Global mobile consumers spent 25% more time streaming shows and movies in Q2 2020 than in Q4 2019, according to the latest report  from mobile data and analytics company App Annie.

Consumers spent 1.6 trillion hours on their mobile devices in the first half of 2020.

Other findings include:

  • Consumer spend on mobile rose to $50 billion in the first half of 2020, marking the biggest first half yet for iOS and Google Play.
  • Downloads of mobile apps and games topped $64 billion in the first half of 2020 across iOS and Google Play worldwide.
  • The average user spent 27% of daily waking hours, or 4.3 hours, on their mobile device in April 2020 — up 20% from 2019.
  • Social apps blurred the lines with streaming providers with the percentage of Netflix’s iPhone users also using TikTok growing from 15% to 45% in Q2 2020 compared to the same quarter in the previous year.
  • Mobile commerce surpassed 2019 holiday shopping levels.
  • Mobile ad placements grew 70% during the pandemic driven by interstitial ads.

 

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“COVID-19 propelled mobile usage forward — achieving growth that would have otherwise taken two to three years,” said Lexi Sydow, senior market insights manager for App Annie, in a statement. “As we head into the holiday season and 2021, businesses who prioritize mobile will outpace competitors, as mobile represents a significant driver of revenue growth for businesses.”

Peacock at Launch Tops App Annie’s Download List — But So Did Quibi

NEWS ANALYSIS — A day after the much-ballyhooed launch of Peacock, NBCUniversal’s new streaming service, corporate parent Comcast Corp. was strangely silent about the initial reaction from consumers.

The company’s press site had no updated news, just a link to an appearance by Matthew Strauss, chairman of Peacock and NBCUniversal Digital Enterprises, on CNBC’s “Squawk Alley” the day before the launch.

But third-party reports suggest strong demand for Peacock, which offers subscribers access to more than 20,000 hours of content from networks and studios.

The Peacock app topped the “free apps” list for July 15 from tracking service App Annie, ahead of Zoom Cloud Meetings, YouTube and TikTok.

And while app downloads only tell a partial story — they only include mobile use — beating Zoom, whose popularity mushroomed with remote working brought on by the COVID-19 pandemic, is no small feat. And yet it’s a little early for Peacock champagne corks to pop.

Quibi, the short-form streaming service launched by ex-Walt Disney and DreamWorks chief Jeffrey Katzenberg and former HP CEO Meg Whitman, also topped App Annie’s list of the most-downloaded free apps on launch day in early April.

Within two months, the app was no longer among the top 1,000 free apps, according to another tracking service, Sensor Tower. And in July Sensor Tower said that only 8% of trial subscribers had converted into pay subscribers. It must be noted that Quibi debates that data.

“The number of paid subscribers is incorrect by an order of magnitude,” according to a Quibi statement. “To date, over 5.6 million people have downloaded the Quibi app.  Our conversion from download to trial is above mobile app benchmarks, and we are seeing excellent conversion to paid subscribers — both among our 90-day free trial sign-ups from April, as well as our 14-day free trial sign-ups from May and June.”

Comcast, which reports second fiscal results July 30, will likely defer any quantitative consumer data for Peacock until then. The service — like WarnerMedia’s HBO Max — has met significant distribution challenges from the outset with both Roku and Amazon Prime Channels not listing the app reportedly due to contractual differences over who controls user data, among other issues. The two platforms account for 70% of the combined market share as of July 2019, according to Parks Associates.

Roku reportedly demands 20% of subscription fees, with Amazon commanding upwards of 45% from users who subscribe through their channel features. But the platforms are also asking for ad inventory, free content for the Roku Channel and Amazon’s IMDb TV, according to Variety.

Report: Disney+ European Launch Nabs 5 Million First-Day App Downloads

The Disney+ launch March 24 in Austria, Germany, Ireland, Italy, Spain, Switzerland and the United Kingdom reportedly generated about 5 million app downloads, according to new data from App Annie. By comparison, Disney’s launch of a branded SVOD service in North America last November generated 10 million downloads/sign-ups.

With many Europeans on lockdown at home due to the coronavirus pandemic the launch comes at a time when people are even more inclined to stream video content.

“Disney+ is set to be one of the top streaming apps in the region,” analyst Adithya Venkatraman wrote in a blog post.

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With schools closed, Disney+, with its array of kid-friendly programs, made Frozen 2 available three months ahead of schedule.

Disney+ will be available in France on April 7, and additional Western European markets in the summer, followed by Latin-America and Asia-Pacific.

Disney+ began testing the service in India through the company’s Hotstar app, the 10th ranked app in India by time spent on Android phones in 2019, according to App Annie. Disney recently announced the India launch would be postponed.

So far in 2020, Disney+ is the 7th ranked non-gaming app by consumer spend worldwide with the U.S. being the main driver of consumer spend.

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Through December 2019, Disney+ users are spending an average of 3 hours and 10 minutes per month in the app, according to App Annie. This is comparable to established players like Netflix (4 hours and 20 minutes per month), and Hulu (3 hours and 20 minutes per month). By the end of 2019, 25% of Netflix users on iPhone in the U.S. also used Disney+, the highest overlap of users among top video apps in the U.S.

With increased social distancing measure taking effect in the U.S. and across the world, free streaming service Pluto.tv (a subsidiary of ViacomCBS), saw a 75% week-over-week increase in time spent on Android phones in the U.S. during the week of March 1-7.

The recent acquisition of Tubi TV by Fox, and the planned April 6 launch of Quibi further highlight the increasing competition among video apps for consumers’ time and money, according to Venkatraman.

“If Disney+’s uptake in European markets is similar to what we saw in the U.S., it would make Disney+ one of the largest streaming services by [monthly active users] in every European market it launched in,” Venkatraman wrote .

He said there was a comparable amount of cross-app usage between Netflix and Amazon Prime in the U.K. and Germany during 2019 — 17% in the U.K. and 25% in Germany.

“This suggests that consumers in these markets are willing to support multiple subscription services. The question is how many, and for how long?” Venkatraman wrote.