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>>Now look at 2012: the long tail is responsible for 68% of the revenue generated, with the top 25 at 15% and the top 26-100 at 17%. >>Bottom line, in the new
by credo 14y ago
>>Now look at 2012: the long tail is responsible for 68% of the revenue generated, with the top 25 at 15% and the top 26-100 at 17%.
>>Bottom line, in the new app economy, there’s no struggle of the 99% here. The richer are getting richer, but so are the middle class and the poor. And those last two are gaining fast.
She seems to be defining "long tail" as all apps that are not in the top 100 ranks (i.e. 99.98% of all apps are in the long tail)
Not surprisingly, this definition leads her to the absurd conclusion that the poor are getting richer.
However, data (see http://daveaddey.com/?p=893 http://daveaddey.com/?p=893) suggests that the bottom 80% of apps probably make just around 3% of app store revenue. If you define poor as apps in the bottom 50%, I'd say that their daily revenue is either zero or negligible (and a "middle-class" app in the 55th percentile isn't making much more)
- hkmurakami 14y agoI had similar suspicions as well. The only graph/data that actually supports "the masses getting richer" by a per app basis is the last graph which shows revenue per app rank[1]. However, this graph only shows the top 100 apps, which when taking the universe of 600,000 apps, is only 0.0166% of the universe. Let's suppose that "middle class" of the app universe would be around the 70th percentile in the universe [2]. In this case we should look at the year over year revenue growth and market share growth of the 180,000th ranking app in the app store. I wonder if we could get numbers on such stats? [1] http://tctechcrunch2011.files.wordpress.com/2012/08/revenuenormalize_byrank-resized-600.png?w=640 http://tctechcrunch2011.files.wordpress.com/2012/08/revenuen... [2] Potentially flawed assumption.
- nilsbunger 14y agoI would love to see data that excludes apps that don't monetize within the app ecosystem. That is, ones that have no price, no IAP, and no ads. These are things like your bank's app, a Salesforce app, etc. I wonder how many those would subtract from the "bottom". Regardless, I agree with your overall assessment of her data.