FICCI FRAMES 2013: Revenues from Apps heavily reliant on advertising

Given the fact that in the mobile internet driven scenario, the mobile apps development industry has taken off big time internationally, the Indian developers still continue to suffer due to under investment in seamless payment and distribution platforms. This point was amply discussed on Day 2 of FICCI Frames 2013 at a session titled ‘Apps are changing the World: Can India be the next app Superpower?’ by experts who shared their thoughts on where the whole app economy is heading and what are the factors that India needs to urge on. The session was moderated by Rajiv Makhani, Managing Editor, Technology, NDTV and panelists were Vishal Gondal, MD- Digital, Disney UTV; Jay Alan Samit, CEO, Oovoo.com; Vikas Khanna, Michelin starred celebrity chef and Viral Oza, Director Marketing, Nokia India.

Today it’s all a dizzying world of apps which are adding dimensions to our daily life and enabling us to access content and services that we never thought of. So while discussing about the status of apps today, Gondal said, “Today I would like to use apps that actually sell as with the overgrowing market of smartphones India is getting smarter and so is the usage of apps.”
Khanna, who is not much into technology, added his thoughts by saying that, “For me apps are the potential platforms and I personally see it happening being part of various apps based contests.”
On business front, monetisation is a big challenge as Gondal explained that, “There is the issue of operators taking away 70 per cent of revenue but yes Vodafone changed this by giving away the70 per cent to the app developer and keeping rest 30 per cent.”

Whereas, Samit felt that "People today prefer sending text messages where there are voice call services available. Video calling is being used for someone whom they love. He also observed that apps can come from anywhere for example Angry Birds apps which come from Finland."
On asked about the obstacles faced while endorsing the apps he said, “If u have really good app & understand passion of users it’s not so difficult. Also celebrities will use apps if they connect people.”

On the point of usage of apps in India, Oza said that, “India has about 2.5 million app developers which is a strong factor. We focus on to ensure that an app is present regardless of whether a user has a smartphone or a feature phone.”

He added, “The quality of any app not just depends upon the providers but also on the end consumers who are using it and how they are using it.”
“Vishal added, “Utility apps works fairly well in India like Facebook, Twitter and Google but on the entertainment front it’s not the same as here TV & Film holds a strong role as entertainment medium.”

On talking about the challenges that India is facing today in context with apps, Samit said, “The absence of a venture funding system for apps is surely one major concern and the other is that the innovations in the user interface is just happening in the US.”

"About 50 per cent of apps downloaded in India are from a Nokia store. This shows that apps have quality as well as bond with its users,” said Oza.

Panelists concluded the session by stating that “Yes, India can be the next app superpower as consumption category is high in India,” said Oza whereas, Gondal said, “When 400 million users are connected with apps, India has to be the next app superpower and mobile will be a game changer.”