17th June 2013

Australians are taking a big bite out of the multi-billion dollar mobile and tablet applications industry, a media researcher says.

From broadcast media to start-up companies, Australia's slice of the booming apps market is creating jobs and attracting businesses worth millions of dollars, says Dr Ben Goldsmith of QUT's ARC Centre of Excellence for Creative Industries and Innovation (CCI).

"The IBISWorld Survey shows that there are 364 apps companies in Australia," he said.

"The report reveals that the industry employs 1,500 people, generates $295 million every year and has an annual growth of 177 per cent."

Dr Goldsmith, from QUT's Creative Industries Faculty, has found these companies create apps in all areas including games, finance, books, education, health and maps, and around 200 of the apps companies are in Sydney.

"The apps industry is spawning a range of business opportunities because it's something that both companies and individuals can do," he said.

"There isn't a 'typical' apps entrepreneur - they come from different backgrounds, such as software development, marketing, design, investment and venture capital.

"Some are just very gifted kids."

Australia's app industry does more than design and develop applications for mobile phones and tablets - companies are now specialising in areas such as mobile marketing, advertising, security, testing users' experience and developing templates from which others can build their own apps.

"There are also services that nobody imagined we needed before apps became such an important part of our lives," Dr Goldsmith said.

"For instance, Apple just bought an Australian-developed search engine for apps called Chomp, and has incorporated the search service into its online store."

Dr Goldman said broadcast media is jumping into the growing apps industry, recognising them as a way to expand business.

ABC iview started as an internet service for people to watch ABC programs on their computers but now offers an app for viewing programs on wireless devices.

"ABC has discovered that more people watch the programs on mobile phones or tablets than on computers," Dr Goldsmith said.

"Networks have developed 'companion apps' that prompt viewers to fill in surveys, answer questions or access extra content while the program is running.

"So creating apps that cater to the viewers' needs isn't just a way to survive - it also encourages conversations between consumers and companies."

Dr Goldsmith said Sydney, with its vibrant start-up culture, was emerging as the centre of Australia's apps industry.

Software company Atlassian, started by two Sydney friends in an apartment, now sells $100 million worth of software a year worldwide and is worth $1 billion. Sydney-based Gruden has expanded internationally and helped build the app store for China Mobile.

"With the growth of the mobile and tablet market, the apps industry is a diverse and rapidly growing area," Dr Goldsmith said.

"So there's immense potential for Australian companies and I'm optimistic that we'll rise to the challenge."

The ARC Centre for Excellence for Creative Industries and Innovation (CCI) is helping to build a creative Australia through cutting-edge research spanning the creative industries, media and communications, arts, cultural studies, law, information technology, education and business.

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Media contacts:
Dr Ben Goldsmith, CCI at QUT, 3138 0366 or 0434 556 107
Stuart Cunningham, Director CCI, 0407 195 304 s.cunningham@qut.edu.au
Todd Bennet, manager CCI, 3138 3889
Kate Haggman, QUT Media 3138 0358 kate.haggman@qut.edu.au

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