The App Bubble Burst The Coming App Economy Correction
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In May 2014 we warned about potential risks of the Superstar App Economy. Too few apps were taking most of the revenue. Investors funded huge marketing and development budgets in a bid to create mega hits, but in the process raised the barriers to entry. The pursuit of the standout success by a handful of app developers created bubble economics. Many of those pacesetters struggled to come up with follow up hits that met, let alone surpassed, their previous successes. It is now clear that the sustainability of the current mobile app games market, and by implication the broader app economy, cannot be taken for granted. In fact, the app bubble may be about to burst.
Companies mentioned in this report: Apple, Google, Zoosk, Tinder, Deezer, Spotify, Pandora, EA Games, Supercell, KING, Rovio, Disney