US iPhone users are predicted to spend around $88 per annum on premium apps and in-app purchases by 2019. According to new data from Sensor Tower, the revenue coming from devices is estimated to be 86% higher than in 2016.
According to Sensor Tower’s last estimates in 2016, device spending stood at $47 then. But in 2017, iPhone users have already matched last year’s expenditure in the US.
For 2017, they are nearing a spend of $63 on premium apps and in-app purchases. That’s an increase of 33% from 2016.
For 2018, Sensor Tower projects that the average app spend per US device owner will increase to $77.
Although the majority of expenditure is still being attributed to gaming apps, which will account for almost 70% of per-device revenue, other categories such as Entertainment are picking up.
The latest report predicts that around $60 of the $88 forecast for 2019 will go toward gaming apps.
However, entertainment apps are likely to overtake music as the second strongest category in terms of per-device spend. The increase is largely attributed to the success of apps such as Netflix and HBO Now. Entertainment apps are predicted to increase their share of the $88 in 2019 to over 9%.
The findings are in line with Sensor Tower’s previous predictions earlier this year, which suggest that entertainment app spend grew 130% year-on-year.
Netflix increased its iOS audience considerably by the end of 2015 and generated $7.9 million in gross revenue during the first quarter of the app’s launch. By Q4 2016, the company was making $58 million from its app.