Facebook Dives into This New Market’s Revenue Potential
Facebook’s (NASDAQ:FB) staggered launch of its new app store has reached the U.K. after the company introduced its regional version with additional European-specific services. The App Centre launched in the US last month with more than 600 programs, including Pinterest, Zynga’s (NASDAQ:ZNGA) Draw Something, and Bejeweled available right from the first day. The U.K. version also includes apps like Deezer, a popular French music streaming site.
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The store is available on the website as well as through the Facebook mobile app on both Apple’s (NASDAQ:AAPL) iOS and the Google (NASDAQ:GOOG) Android platform. The store includes a way for users to rate and recommend apps.
Facebook also plans to sell its own apps through the store. It is being predicted that the launch of the store will encourage more developers to create paid apps written specifically for Facebook, which automatically results in a 30 percent revenue share for the social network.
Facebook does not plan to take a cut from popular apps such as Spotify or Pinterest, instead giving them prominent display space because of their already-high ratings. “Success through the App Centre is tied to the quality of an app,” Facebook engineer Aaron Brady had said while announcing the platform earlier this year. “We use a variety of signals, such as user ratings and engagement, to determine if an app is listed in the App Centre. To help you [developers] monitor user feedback, we are also introducing a new app ratings metric in Insights to report how users rate your app over time.”
According to Juniper Research, mobile apps will generate $52 billion in revenue by 2016, with 75 percent of it coming from smartphones and 25 percent from tablets.