App Store Subscriptions Boom as Consumers Choose Convenience Global consumer spend in non-gaming apps grew 120% Worldwide Consumer Spend for Non-Gaming Apps from 2016, fueled by in-app subscriptions. The top 5 most iOS and Google Play lucrative non-gaming apps of 2018 all contained in-app subscriptions. 2014 2015 2016 2017 2018 2013 Zuora — a company built entirely on providing technology to power the subscription economy — went public in 2018 $19.7B at a $1.4 billion valuation. From 2017 to 2022 we forecast $13.3B that spend in apps outside of games will increase by $75 $3.7B in All Non-Gaming Apps $8.9B $6.2B $5.1B Worldwide Consumer Spend billion, largely due to in-app subscriptions. LINE LINE Netflix Netflix Spotify Spotify 1 As of December 2018, Netflix has stopped offering 2 Pandora Music Pandora Music Tinder Tinder LINE LINE subscriptions directly through the iOS App Store for new 3 LINE PLAY LINE PLAY Tencent Video Tencent Video Pandora Music Netflix customers. Avoiding the app store fee allows Netflix to 4 Zoosk Zoosk Pandora Music iQIYI HBO NOW Tinder Consumer Spend receive 100% of the revenue from its subscriptions. For the 5 Comics Skype LINE Pandora Music Tinder HBO NOW Top 5 Non-Gaming Apps by majority of publishers, the total addressable market (TAM) associated with the App Store’s simple, frictionless and Apps with in-app subscription payments secure payment channel will outweigh the extra revenue. Going direct will likely only work for the biggest brands. 18 COPYRIGHT 2019