September 16, 2024
Why diversify? The benefits and drawbacks of alternative app stores
Evaluating 7 alternative app stores for launching your mobile game
Tips for an effective distribution strategy on alternative app stores
The future of mobile game distribution
In the realm of mobile gaming, getting your game into the hands of players worldwide has generally had to pass through at least one of two gatekeepers: Apple, for iOS, and Google, for Android. These two companies have effectively held a “monopoly” on app distribution through their platforms over the past decade. And they’ve surely benefited from it – with each taking up to a 30% cut on in-app-purchases and subscriptions. (1)
Now, as these app store giants are being taken to court in the EU (2) and US,(3) publishers are finding new ways to reduce reliance on the same app stores, such as by clawing back their margins through direct-to-consumer web shops (DTC) and exploring alternative distribution channels.
In this article, we’ll dive into the latter to examine the pros and cons of diversifying your distribution strategy and leveraging alternative channels to get your game in front of players all over the world.
👀 Related reading: Future-proof your profits: Forecasting monetization trends on the rise in mobile gaming
Alternative app stores and distribution channels offer new opportunities for publishers to innovate, increase their bottom line, and access new potential players.
“Google and Apple’s long-time reign of control over 95% of the app store market share is ripe for major disruption now more than ever before. With the right strategies and precautions in place, app developers and publishers share excitement about the endless possibilities for new and innovative app experiences.” – Piyush Mishra of Product Madness and Shalom Michaeli of Digital Turbine (4)
However, with every new channel comes a new set of challenges. Publishers must weigh the opportunities against the risks and costs when assessing whether or not they want to diversify their distribution platforms.
Some of these pros and cons include:
By venturing into alternative app stores and distribution channels, there’s bound to be less competition than in the overcrowded environments of major platforms. This could increase your chances of standing out and gaining visibility among your target audience. For example, Statista reports that the Amazon App Store offered approximately 480,000 Android apps compared to Google’s 3.5+M and Apple’s 1.6M+ in 2024. (5)
But remember, fewer publishers also means fewer players. As alternative platforms have smaller user bases and less reach than the Google Play or Apple app stores, you’ll need to invest more effort and budget in marketing and UA to reach a comparable level of user acquisition. Plus, what works on the traditional app stores may not work on your alternative channels, which could require extra time and experimentation to get your strategy right.
By diversifying your distribution channels, you can vary (and thereby strengthen) your revenue streams beyond what major app stores offer, as well as expand your reach with demographics that might not frequent mainstream platforms. While this can help boost your overall revenue and UA rates, operating across multiple distribution channels can also lead to channel fragmentation – and by extension, new challenges to effectively balance resources and analyze data.
To balance these resources and analyze data efficiently, publishers would then need to adapt their strategies to accommodate the nuances of each platform. Doing so could result in even more time and resources than previously necessary to manage key partnerships, monitor performance, and optimize relevant channels.
While capturing ad and in-app purchase (IAP) revenue outside the Apple and Google Play app stores can help improve your margins, releasing your game on alternative app stores will cost additional resources. Each new platform requires a new build of your game, new integrations with the service provider(s), and at least some of your UA and marketing budget allocated to acquiring users through that channel.
“When it comes to the distribution of games, the problem most mobile developers face is the lack of uniformity across the stores. With the requirements for store integration varying from one platform to another, it’s quite easy for resources to be squandered… Nine times out of ten, developing and maintaining multiple versions of a game turns out to be a time-intensive and costly endeavor. And because your typical studio comes with finite budgets, time, and talent, publishers and developers often opt to focus on the ecosystems they’re most familiar with – namely iOS and Google Play.” – Michael Hudson, CEO of GameBake (6)
When calculating the risk-to-benefit ratio of diversifying, consider what new monetization avenues a new app store could open for your game. For instance, alternative app stores might not limit your promotion of a DTC web shop in the same way that Apple currently does, and other avenues, such as direct player support, might be more feasible – especially with stores like AltStore offering a custom Patreon integration to support their publishers. (7)
“One thing AltStore does that should really get you thinking about alternative payment systems that Apple would have never considered: It has a Patreon integration, and can tie access from your app to your Patreon pledge, which gives you an entirely different, personal relationship with your users, and lets you use the same reward system you use for videos, blog posts, merch, etc. Alternative app stores don’t just have to recreate Apple’s model.” – Steve Troughton-Smith, iOS developer (8)
Ultimately, adding a new distribution channel to your strategy requires work, and publishers will have to carefully weigh the pros and cons, calculate the revenue impact, and experiment with new channels to identify what will work for them.
Over the years, many alternatives to both the Apple and Google Play app stores have cropped up in the mobile app space. These alternatives range from major tech players looking to diversify their offerings to independent start-ups hoping to disrupt the industry.
Let’s take a look at some of the most popular alternative app stores that might fit into your distribution strategy.
In 2024, Epic Games launched its new Epic Games Store for Android internationally, and for iOS in the European Union exclusively. Here’s a breakdown:
Pros:
Cons:
For several years, Epic Games has been disputing many of Apple’s practices in court. (9) This store launch is another clear move toward offering publishers alternative pathways to success.
“We’ve long been advocating for the rights of stores to exist and compete fairly on iOS and Android. Progress is spreading across the globe in the form of Europe’s DMA, [with] similar laws in the UK and Japan, regulatory investigations around the world, and victory in the Epic v Google litigation in the US. As operators of the Epic Games Store, we’ll take advantage of this opportunity to bring all developers a great deal on our store. And as game developers ourselves, we want to do everything we can to support other stores that strive to bring all developers their own great deals.” – Epic Games (10)
The Huawei AppGallery, established in 2011, has emerged as a prominent app store in Asia. Following the trade tensions between China and the United States, Google and its services were banned in China, leading to the exclusion of the Google Play Store. That’s when Huawei stepped in with the Huawei AppGallery to address this crucial gap.
Not only has it been preinstalled on Huawei and Honor mobile devices, but since 2022, (11) the Huawei AppGallery has boasted 580M+ monthly active users (MAU) with 2.3M developers registered to the platform. Here’s what those developers might experience:
Pros:
Cons:
“It is true that AppGallery is the youngest brother (in terms of age) compared to all other app marketplaces. However, its popularity keeps growing every month, even beyond Huawei devices. We see, especially among gamers, many of them installing the AppGallery app on their devices from all Android brands, in order to benefit from exclusive offers compared to the standard Android experience.” – Dr Jaime Gonzalo, BP of Huawei Consumer Mobile Services in Europe (12)
The Amazon Appstore, also established in 2011, is one of the top alternative app stores for publishers, boasting over 480,000 apps for Android-compatible devices to date. With widespread availability on a range of devices across a nearly global user base, it’s become a popular alternative for publisher distribution strategies. (13)
Here are some main features (according to Amazon themselves):
Pros:
Cons:
Beyond device manufacturers, there are many up-and-coming third-party app stores for mobile game publishers to consider. Here are a few to keep an eye on:
AltStore is an open-source, alternative app store for iOS devices, co-created by developer Riley Testut, who is known in the open-source gaming community as the creator of Delta, a Nintendo emulator app for phones. Since launching in 2019, AltStore has offered a variety of apps and games without requiring users to jailbreak their device.
While the EU version, AltStore PAL, originally charged a €1.50 subscription cost to cover the Core Technology Fee (CTF) from Apple, it has since been dropped thanks to a generous grant from Epic Games, as they look to support other alternatives to Apple and Google. (14)
Pros:
Cons:
AltStore claims to be “by indies, for indies,” so while it might not be the perfect fit for every publisher, it’s a great space for publishers looking to experiment and find their footing as they strive to reach an audience seeking out innovative new titles.
While the third-party app store, Aptoid, has been available on Android since 2009, the company only recently launched into beta on iOS (2024), with a specific focus on games. The iOS release is reportedly the first alternative app store available (15) after the European Union’s Digital Market’s Act (DMA) ruling. (16) Here are some of its central features:
Pros:
Cons:
“The Aptoide iOS game store represents a significant shift in the way users and developers interact with the iOS gaming ecosystem. It marks a significant departure from the traditional iOS gaming ecosystem, which has been controlled by the Apple App Store. We are optimistic that, with continued cooperation from Apple and regulators, the business terms and user experience will improve in the coming months.” – Paulo Trezentos, CEO of Aptoide (18)
With regional differences in how apps are distributed, there are additionally some geo-specific app stores to add to your distribution plan depending on your target audience. Here are a couple of note:
Xiaomi GetApps, from leading smartphone developer Xiaomi Corporation, is a third-party app store focusing on underserved, emerging markets. Currently available in India, Indonesia, Russia, and Spain, with plans to launch in the EU and Southeast Asia, Xiaomi provides another doorway for publishers to grow their player base. Here’s what they could expect:
Pros:
Cons:
ONE Store is a popular alternative app store primarily based in South Korea. It offers users a diverse range of applications, games, and digital content.
Launched by the top three telcos (SK Telecom, KT, and LG Uplus) in partnership with Naver, ONE Store aims to provide a localized platform for users to discover and download local and international apps alike. Here’s what’s offered:
Pros:
Cons:
ONE Store claims that publishers can expect an additional 20% in revenue and 27% in margins, on average, after launching on their app store. (19) They attribute this to their large South Korean user pool, in addition to cost savings from reduced service charges.
👀 Related reading: The spending habits of Korean mobile gamers: IAP trends shaping 2024
Expanding or moving to alternative app store(s) for distribution is one thing, but preparing your game for each distribution channel is another beast entirely.
“The long and short of it is you cannot expect a jump in revenue simply by adding your games to the alternative app stores. You must put time and effort into understanding the quirks of each. If you do, you can expect a revenue boost of 10% or more in the first year.” – Andreas Mac Mahon, Former CPOI of Flexion (20)
As Mac Mahon covers in his article, How to break into the alternative app stores, here are a few tips to maximize the value gained from diversifying your distribution channels: (20)
2024 has marked a new dawn for alternative app stores. With the DMA ruling for iOS devices in the EU, publishers can now explore their newfound freedom to expand game distribution beyond the traditional markets of Apple and Google. We’ve only just seen the beginning of new app stores entering the market for iOS, with much more to come, such as Microsoft’s planned mobile game store launch later this year. (21)
Publishers are already making big moves – from Epic Games launching their most popular titles on their own app store, to independent stores, like AltStore PAL and King releasing Candy Crush Saga on Huawei’s AppGallery, the Samsung Galaxy Store, Xiaomi GetApps, and ONE Store. The list is only growing as the landscape of mobile game distribution continues to evolve.
It’s time for mobile publishers to look beyond traditional app stores in order to tap into niche markets, unlock additional revenue opportunities, and stay resilient in an ever-changing digital environment. Innovation demands it.
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