Rise of OTT Players, The Growth Of Smartphones & Changing Internet [KPCB Report]

VC firm Kleiner, Perkins, Caufield and Byers’s latest Internet trends report is out. The annual report offers some great insights into the world of Internet and how technology is re-imagining almost everything around us. Here are excerpts from the report.

1. While Internet growth is slowing, smartphone subscribers ,tablets and mobile traffic are rapidly growing. Globally, smartphone usage is growing with nearly 30% of 5.2 billion mobile phone u<10% Y/Y growth & slowing…fastest growth in more difficult to monetize developing markets like India / Indonesia / Nigeria. In the fourth quarter of 2013, 315 mn smartphones were shipped globally. +20% strong growth though slowing…fastest growth in under penetrated markets like China / India / Brazil / Indonesia.

Pic a KPCB 2014

2. iOS and Android continued to dominate smartphone operating systems while Blackbeerry, Windows and others have been pushed to the bottom. Android has significantly increased its markeshare over the years at the expense of Nokia’s Symbian.

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3. Advertising on the Internet remains strong with nearly 15% growth in 2013 at a little over $100 bn. Mobile advertising has also grown to over $15 bn in 2013.

Pic c KPCB 2014

4. Even though people spend only 5% of their time on print media, nearly 19% of the total advertising spend goes to the medium. Wheareas nearly 25% of the time is spent on the Internet and only 22% of the ad spend goes to it. People spent 20% of time on their mobile phones and yet, only 4% of advertising money was spent on the medium. It indicates a massive upside of over $30 bn in the US alone.

Pic d KPCB 2014

5. For app makers, revenues by selling apps was still way higher than ad revenue.

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6. The dollar value of technology IPOs in 2013 were 73% below the 1999 peak level. Nasdaq was 18% below march 2000 peak. (Also see: For Indian VCs, It’s Prayer Time)

pic f KPCB 2014

7. Venture Financing in 2013 was also 77% lower than 2000 peak level in $ terms. (Also see: Indian Tech & Tech Enabled Companies Raised $437 mn Funding in Jan-Mar 2014)

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8. Globally, over the top messaging services have garnered over 1 billion users in less than 5 years.

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9. Facebook, Pinterest and Twitter with an estimated 21%, 7%, 1% of global referals are leading sources of traffic for publishers. Average article reaches half total social referrals in 6.5 hours on Twitter, 9 hours on Facebook.

10. Music consumption in the US has grown. However, streaming music trumps digital track sales.

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11. Smartphone costs are declining 5% annually and are becoming increasingly available to the masses.

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12. While television continues to be one of the most viewed medium in countries, laptops, PCs, smartphones and tablets ahve caught on very quickly. Smartphones have beaten TV in many countries. Nearly 84% of mobile owners use devices while watching TV.

Pic k KPCB 2014

13. Smart Televisions are rising in popularity but are still a small segment of the installed base at less thatn 10 %.

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14. Millenials spend 34% of their TV Time online, which is more than thrice that of non millenials.

pic m KPCB 2014

Here’s a look at the complete report.

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