13.02.2015

Apps are now more profitable than Hollywood in America

Apps are now more profitable than Hollywood in America

Image | Garry Knight

The entertainment industry is one of the most powerful in the world. Or at least thats what they say in America, where the Mecca of cinema, Hollywood, strives for excellence every day and keeps on churning out the profits thanks to its studio system. However, it looks like there there is a sector which is keeping pace: the applications sector.

According to numbers from Asymco, in 2014 the industry created 25 billion dollars worth of income for app developers. Of these, 10 billion were from the Apple stronghold, which on its own outstripped the Hollywood box office receipts for the corresponding year.

It is also apropos to mention that the app industry is also “healthier”: last year the 627,000 jobs were created related to the company with the bitten apple with, compared to the 374,000 created by Hollywood. What’s more, Asymco adds that some of the developers are earning more than the stars of Beverly Hills.

Apps are now more profitable than Hollywood in America

The chart above shows how box office sales have remained stable, albeit with a slight decline, while the invoicing for apps has shot up since 2012, enough to already overhaul the cinematic sector. As well, the following chart shows that apps are some of the most downloaded digital content on iTunes (red bars), second only to books.

Apps are now more profitable than Hollywood in America

It’s clear that the times they are a changing, and with them the form in which we consume content and entertainment.

Interestingly, in these times when some are seeing their business models begin to falter and others unprecedented success, cinema and apps are converging. The most recent example of this was seen at the Sundance film festival, which premiered a film that had been shot, for the first time ever, entirely with an iPhone 5S: Tangerine.. The director and screenwriter, Sean Baker, decided to use the iPhone in order to save costs. The app that he used, Filmic Pro, costs barely eight euros. A ‘steadycam’ and a series of lenses took care of the rest of the job.

Another shining example is the Phonetastic Mobile Film Festival, which was launched in 2012 by the Mobile World Capital Barcelona Foundation and the Sitges Film Festival, and has just held its third edition.

Mobile World Capital Barcelona promotes entrepreneurship as a catalyst for mobile innovation and as a key agent for the progress of the economy and business community. The Programme of Entrepreneurship and Innovation (PEI) is currently one of the foundation's main efforts, and is meant to accelerate this transformation.

The PEI’s activities include 4 Years From Now (4YFN), an international mobile entrepreneurship event sponsored by Mobile World Capital Barcelona to place supply and demand in contact, promote knowledge transfer, and encourage networking among entrepreneurs, professionals, startups, accelerators, incubators and investors from around the world.

Mobile World Capital presents a global vision that effectively integrates mobile technologies into the fabric of the industries transforming our lives. Committed to expanding the mobile experience throughout Barcelona, Catalonia and Spain with strong support of the public and private sector.

Mobile World Capital is leading mobile transformation through commitments in Competence Centres, local Industry Development, and Entrepreneurship and Innovation programmes.

MWCapital offers an open platform and exhibition showroom where citizens can understand and experience how mobile is enhancing our lives: The Mobile World Centre, located in the heart of Barcelona on Plaza Catalunya.

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