Ripples
Apple, the company behind one of the two most prominent global app markets, will reportedly decrease fees for its App Store. Accordingly, much attention is being paid to how Apple's move will affect the Korean app market. Since the Apple App Store does not account for the vast majority of the Korean market, many in the industry are saying that it will not have a huge impact on the local market.
According to industry sources on June 8, the Google Play Store comprises 50 percent of the local app market, and the Apple App Store 30 percent.
Data compiled in 2013 by the Korea Mobile Internet Business Association also shows that the weight of the Google Play Store is 49.1 percent and that of the Apple App Store at 30.5 percent.
With the two app markets exerting huge leverage in the global app market, Apple is going to reduce fees for digital content sold in the App Store to less than 30 percent. Hence, there is much attention towards Google and local app markets' next move.
However, those app markets are not showing any specific moves. Apple's policy to collect a smaller amount of fees hasn't begun in earnest yet, and it is aimed at app developers.
Local app markets are planning to focus on marketing, including increased benefits for app users, rather than reducing fees.
On June 3, One Store, which combined app markets operated by SKT, KT, and U+, was unveiled in the country. It is now possible to use the same apps and games in any app market by accessing and upgrading the app market managed by each mobile carrier.
An official at a telecommunication operator remarked, "Currently, local companies are not planning to lower fees for app developers," adding, "The local industry is not paying much attention to Apple, since the company does not have a huge influence on the local market, unlike Google. But if Google also joins the trend, it will be a different story."
Many in the industry appear to be hoping that the launch of One Store will bring about a change in the app market. Since the combined app market is still in the early stages, the three local mobile carriers plan to concentrate on increasing its market size by strengthening marketing for app users instead of measures for app developers.
A spokesperson for a mobile carrier said, "We are conducting a marketing campaign by returning part of the payment in the form of points, once users make a payment for games on the One Store." The official added, "There is a difference between foreign and local app markets, in that the goal of Apple and Google is to sell apps in their app market."
In addition to One Store, compared to the same period last year, the Naver Appstore has seen its monthly users double in size and triple in the amount of transactions by providing mileage to users, together with an 8:1 fee.
An industry source noted, “Apple's plan to lower fees will be good news for app developers, but there isn't a plus from the perspective of users.” The source added, “So, it will be absolutely necessary for the industry to concentrate on marketing and create new success cases rather than collecting a lesser amount of fees.”