2013-10-14 20:15:35 - Candy Crush has been dominating APP charts with its 44m monthly users and has reportedly hired Bankers for IPO
British Virgin Islands - Laureate BVI Ltd., Mobile App revenues are expected to exceed $26bn in 2013 according to Peter Tasca, CEO of Laureate BVI. He expects over 100bn app downloads with over 92% of downloads being free.
Last year, mobile AD firm Fisku reported that iPhone users downloaded 6 million free applications each day in December.
“Mobile Apps must embrace the “Freemium” model and monetize content through in-app purchases such as Candy Crush and Farmville, in order to become successful”, according to Tasca.
The most successful freemium belongs to King, the firm behind Candy Crush Saga. The game has over 44 million monthly active users, more than Spotify, Pinterest and Zynga’s Farmville.
Riccardo Zacconi, King’s co-founder and CEO says, “The games are easy
to learn, but they’re difficult to master.” Each level is designed to take a maximum of three minutes, a time frame Mr. Zacconi calls the “minimum common denominator” for consuming content.
Tasca says, “Simplicity is key when it comes to developing apps and Mr. Zacconi has developed his entire gaming portfolio around that model.”
Mobile apps have also been a big business for Apple(APPL), Google(GOOG), and Facebook(FB).
Apple at its Worldwide Developer Conference talked about 1.25 million apps accounting for 50 billion downloads and $5 billion paid to developers.
Facebook(FB) which Laureate BVI issued a buy recommendation when it was trading at $27.43 has returned over 78% for Laureate in 5 months.
Tasca still rates Facebook a buy and states, “Facebook is a very powerful tool for advertisers and app developers. Candy Crush makes over $600,000.00 per day from the game.”
According to Tasca, Facebook(FB) is the target platform for Candy Crush. This platform is a free marketing tool for app developers, whenever a player completes a level they can notify all their Facebook friends, the most trusted recommendations come from friends.”
The Wall Street Journal reported King had hired bankers to handle a possible IPO. Mr. Zacconi has stated, “It’s one of the options but at this moment in time I’m focused 100 per cent on building the business.”
Tasca says, “An IPO is viable for King, there is not a lot of new issues out there except Twitter coming out next month. If you look at the revenue of King compared to twitter they are very similar and King has a solid pipeline of over 200 games which only eight have been launched on Facebook and three on mobile, there is a lot of potential.”
We all know someone that plays Candy Crush and the Freemium model is very sustainable.