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The American App Economy Is Now "Bigger Than Hollywood"

Lemeowski writes Technology business analyst Horace Deidu found an interesting nugget while closely examining an Apple press release from earlier this year: "The iOS App Store distributed $10 billion to developers in 2014, which, Deidu points out, is just about as much as Hollywood earned off U.S. box office revenues the same year." That means the American app industry is poised to eclipse the American film industry. Additionally, Apple says its App Store has created 627,000 jobs, which Deidu contrasts with the 374,000 jobs Hollywood creates

19 of 135 comments (clear)

  1. Bad comparaison by MouseR · · Score: 5, Interesting

    They are comparing a global economy (Apps) to a local US market.

    What's the profit of global Hollywood sales?

    1. Re:Bad comparaison by XxtraLarGe · · Score: 2

      They are comparing a global economy (Apps) to a local US market.

      If you want to make an Apples to apples comparison (pun intended) when talking about jobs, you'd have to take into account all of the jobs created by European, Bollywood, etc. film industry.

      --
      Taking guns away from the 99% gives the 1% 100% of the power.
    2. Re:Bad comparaison by jofas · · Score: 4, Insightful

      Also, it's a bit of a 90s way to measure Hollywood revenue to look at "box office" sales.

    3. Re:Bad comparaison by telchine · · Score: 3, Interesting

      Call me a sceptic if you like; but I read the summary like this...

      Apple says this in a press release. Hollywood can provably be seen to have done this but not as well.
      Apple says that in a press release, Hollywood can provably be seen to have done that but not as well.

      Since when did Slashdot become a place for Apple press releases to be hyped up more than they are already?

      This is a Slashvertisment... Someone needs to create an ad blocker for these kinds of things!

    4. Re:Bad comparaison by telchine · · Score: 2

      If you want to make an Apples to apples comparison (pun intended) when talking about jobs

      Was the "jobs" pun intended as well?

    5. Re:Bad comparaison by Anonymous Coward · · Score: 2, Informative

      And only U.S. box office, which does not take into account foreign distribution, as well as other forms of revenue such as DVD sales and licensing.

      Apple doesn't know how many jobs its App Store has created, it is using pure statistical formulas to get its numbers. The Hollywood numbers, which extends beyond the Los Angeles area since most productions happen throughout the country, are drawn from the reported jobs from the associated trade unions.

    6. Re:Bad comparaison by Anonymous Coward · · Score: 3, Insightful

      The US app store may be locked to US residents, but there is an Apple App Store for damn near every country, and both TFA and TFPR are clear that the $10 billion App Store figure is global, while the $10 billion box office domestic. Global box office revenue is in the $30 billion dollar range, and if you want to make the claim that something is "bigger than Hollywood" you need to account for box office+blu ray/DVD+streaming+TV licensing+merchandising, so you can probably double that again.

  2. Re:And if you count the 30% Apple kept by tbuddy · · Score: 5, Funny

    Though the 30% is a pretty big chunk, it's nothing compared to the $11 trillion Hollywood loses on piracy every year. They've done studies and it's pretty clear that piracy costs them all the money ever times infinity.

  3. Not even close by metrix007 · · Score: 2

    Movies still far outpace TV sales, especially if you include TV.

    The reported incomes are lies, due to Hollywood accounting.

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    If you ignore ACs because they are anonymous - you're an idiot.
  4. Uh oh, NOW you've done it... by NotDrWho · · Score: 3, Insightful

    Soon, James Cameron will rip his shirt off, scream "NOT FOR LONG, MOTHERFUCKERS!" and return from a week-long free-dive of the Titanic to direct a new blockbuster that will dominate the world in a way that YOUR LITTLE MIND CAN'T EVEN IMAGINE!

    --
    SJW's don't eliminate discrimination. They just expropriate it for themselves.
    1. Re:Uh oh, NOW you've done it... by gstoddart · · Score: 2

      James Cameron does what James Cameron does because James Cameron is

      Already filthy rich.

      --
      Lost at C:>. Found at C.
  5. Re:And yet... by tysonedwards · · Score: 2

    Yes, there was... The key talking points of said article was how the barrier for entry in creating a successful title was in the six figures, and months of effort. No longer is App Development on Mobile with simple titles produced by a single person can be an overnight ticket to millionaire status as was the case with the early days with Trism and it's comrades.

    However, the same can be said of the film industry, where successful releases requires teams of people and significant upfront investment, except usually with a zero or two added to the end of that figure and more people than a typical app or game.

    --
    Thirty four characters live here.
  6. 627,000 jobs, are they real? by k6mfw · · Score: 4, Interesting

    There are many that create apps and have them for sale at Apple, but do they make a living from these sales? There was an article saying App store is more like a casino. House always collects revenue, almost all participants lose money but a few make some money. Article went on about how everyone has to pay $100 to submit their app to Apple Store, and most apps have little sales. Occasionally some apps have huge sales (i.e. Angry Birds) and developers make lots of money. I wonder if same like Hollywood says it creates 374,000 jobs but does that include people working at theaters making marginal income, or starving actors who occasionally get a stand-in part for $50?

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    mfwright@batnet.com
  7. 15K per job in App economy by 140Mandak262Jamuna · · Score: 2

    Hollywood job pays on average 27K. (Using the numbers in the summary). Hollywood pay distributed very unequally. A few mega stars and peanuts for the bit players. The App distribution is much more broad, compared to Hollywood anyway. Without these super mega paychecks and glamor it will not get much of media play.

    --
    sed -e 's/Chuck Norris/Rajnikant/g' joke > fact
  8. Liars figure and figures lie by TrollstonButterbeans · · Score: 5, Interesting

    Subtract out the top 1% of pay to play games and quite a different story will reveal itself.

    Case in point, Clash of Clans makes $500,000 per day and it is well known that Apple commands the overwhelming majority of mobile app $$$ volume. If you add in the revenue from the top 100 "freemium" pay-to-play games that $10 billion figure is going to shrink very, very quickly.

    A handful of Freemium games are the top payouts, with almost the 99.999% of the rest making near 0.

    --
    Priest: "Universe from nothing, no laws of physics, sped up time"+ huge discrepancies. Creationism? No. Big Bang Theory
    1. Re:Liars figure and figures lie by Bogtha · · Score: 2

      It's true that the majority of the profits in App Store sales is focused at the extreme top, but it's not true that 99.999% of the rest make "near 0". This analysis estimates that the top 3,175 applications earn at least the average annual income for a US household per year, and applications that rank about number 6000 still earn $25K/yr.

      And that's only counting App Store revenue. I've earned a lot more than average since I started developing for iOS, and most of the applications I've worked on are free. You don't see things like banking applications earn revenue directly, but the developers responsible certainly profit from it. The Facebook application is free, but you don't think its developers are working on it for free do you? I've been paid to built plenty of enterprise applications that will never appear in the App Store.

      There is a huge amount of profit in the "app economy" that will never be accounted for merely by looking at App Store profits. The "app economy" is much bigger than the App Store.

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      Bogtha Bogtha Bogtha
  9. Are they real jobs? by sideslash · · Score: 2, Insightful

    Keep in mind that many app developers put a huge amount of time and effort into developing their apps and publishing them, and then only see a small trickle of income. They just hover at the edges of the app economy desperately trying to catch their big break, while watching the big stars like Rovio rake in huge paychecks every day. Often they have to work side jobs like waiting tables to pay the bills while they dream of becoming stars in their own right. And sadly, the statistics suggest that most of them won't ever make it big.

    Contrast that to Hollywood, where... uhh, nevermind. Carry on.

  10. Re:"loses ON piracy" - LOL. American idiot. by tbuddy · · Score: 4, Funny

    We helped the French during World War 2 so they wouldn't have to speak German. The French helped us during the American Revolution so we wouldn't have to speak English.

  11. Re:"loses ON piracy" - LOL. American idiot. by oldmac31310 · · Score: 2

    You are correct. Their word for everything is 'tout'

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    http://www.acetonestudio.com