Video dominates mobile app revenue, according to a new report. Of the $3.8 billion smartphone owners spent on entertainment apps last quarter, $3 billion of that was spent on streaming and short-form video apps.
The most dramatic revenue increases have been seen in short-video apps, with TikTok coins accounting for the majority of that money…
Video streaming apps led by Max
Analytics firm AppFigures released the data in its latest streaming app report and found that video streaming has grown significantly over the past five years.
Driven by the continued growth of Disney+, Peacock and Paramount+, as well as the rapid growth of Max, quarterly consumer spending on video streaming apps on mobile is now 383% higher than in the first quarter of 2019.
Max is the leading video streaming app in the US, beating all other competitors in both new downloads and in-app revenue. According to our estimates, the Max app was downloaded 6.4 million times from the App Store and Google Play in the US in Q1 and generated gross revenue of $244 million. Netflix was close behind in downloads and Disney+ was close behind in revenue.
TikTok coins reward live streamers
Low pass reports that the biggest growth was probably generated by TikTok coins.
Revenue from short video apps increased by more than 1,500% – which Appfigures attributes mainly to people buying coins to reward live streamers on TikTok.
Coins can be purchased within the app and used in two ways.
Creators can use them to promote their content. RedSocial says that gaining a new follower costs about 10 cents due to the typical increase in awareness.
Viewers can use them to reward creators. Those who gift coins can also see their donation on the screen while watching a video. TikTok, confusingly, converts coins into diamonds, and these can cash out creators.
Photo: Pxhere
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