The top 1 percent of U.S. publishers on the iOS App Store with paid or in-app purchase (IAP)-supported apps accounted for approximately 94 percent of all revenue on the store.
That’s according to Sensor Tower, a vendor of App Store marketing and sales tracking software, which published its latest findings in its Store Intelligence blog. The company monitored app store revenue and download estimates from Jan. 1, 2016, to March 31, 2016. It compared the estimated net revenue of publishers on the U.S. App Store with at least one actively ranking paid or IAP-supported app. It does not include Google Play or Android.
The dominance is incredible. With the top 1 percent accounting for 94 percent of the store's revenue, that means approximately $1.34 billion of the estimated $1.43 billion in net revenue generated by the store went to 623 publishers. The remaining 6 percent of revenue—approximately $85.8 million—was divided among the other 61,677 publishers that either charge for their app or use in-app purchases.
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Among the 1 percent were publishers such as Supercell (Clash of Clans series), Machine Zone (Mobile Strike), Spotify, Netflix and HBO. Amazon and Uber were not included, as they do not generate revenue via paid apps or IAPs.
The top players also dominate downloads. While there are more than 127,000 publishers that had at least one app ranking on the App Store in Q1, the top 1 percent—1,270—accounted for 70 percent of all downloads. Of the approximate 1.38 billion app downloads from the App Store in Q1, approximately 966 million of those were generated by the top 1 percent.
It's long been known that it is very hard to stand out in the App Store with so many companies competing for attention. Sensor Tower claims that there are rumors of a major overhaul of the store in the works, focused on improving discoverability.
At least this explains why I see those ridiculous Mobile Strike commercials with Arnold Schwarzenegger all the time.