• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military

2

'We are rapidly running out of time': Watchdog sounds Social Security alarm after 22% cut confirmed for 2032

3

Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there

1

Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military

2

'We are rapidly running out of time': Watchdog sounds Social Security alarm after 22% cut confirmed for 2032

3

Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there
Google

Google has another fast growing business (Hint: It’s not search)

By
JP Mangalindan
JP Mangalindan
Down Arrow Button Icon
By
JP Mangalindan
JP Mangalindan
Down Arrow Button Icon
July 18, 2014, 4:53 PM ET
Photo Courtesy: Philippe Huguen/AFP—Getty

In five years, Google Play has gone from being an upstart marketplace for mobile phone apps to a mammoth media hub.

On Thursday’s second-quarter earnings call, Google’s outgoing Chief Business Officer Nikesh Arora all-but-said as much. In addition to apps, it now sells now sells digital movies, TV shows and music to the more than one billion people worldwide who own Android phones and tablets.

It “continues to grow at breakneck speed,” Arora said on the call.

Google doesn’t break out numbers for just how well Google Play is doing. But sales have steadily grown into the second largest source of revenues behind the company’s long-standing cash cow, advertising.

Finding alternative sources of revenue is critical to Google as it tries to offset the inevitable slowing growth in its online ad business. Selling apps and entertainment for mobile device can be an important way to keep Wall Street investors happy along with making its operating system more attractive to consumers and device manufacturers.

Citigroup analyst Mark May predicts Google Play’s annual revenues will grow from $1.3 billion in 2013 to $5.2 billion in 2017. Those figures remain a fraction of the $10 billion in iTunes sales Apple reported last year, but Android’s momentum is undeniable.

Nearly four out of five smartphone owners worldwide have an Android device – twice the market share Android had three years ago – according to IDC. Apple’s iPhone, meanwhile, has a 15% market share.

That’s seriously impressive for an operating system some have criticized for being less polished and unified than Apple’s. Android’s strengths have been its ability to be customized by phone makers – something that Amazon , with its forthcoming Fire Phone, and HTC with its “Sense” software – have tried to take advantage of.

But that same “open” nature breeds complications because there are hundreds, if not thousands, of different phones, using different variations of Android, a situation referred to as “fragmentation.” Users of some versions of Android can’t upgrade their phone’s software at the same speed other users can. It’s because of fragmentation that Android security remains what one tech writer colorfully called a “toxic hellstew.”

But such quirks and challenges will do little to block Android from steamrolling mobile around the world. And Google Play’s rise as a serious source of revenue for Google is just more evidence of that.

Google Play’s chronology is a bit convoluted. It launched in 2008 as an app store called Android Market. In 2012, it merged with Google Music and was renamed Google Play.

The Play store had 1.5 million apps available as of June, more than the 1.2 million offered by Apple’s own App Store. In terms of entertainment, the sprawling marketplace offers many recent movie releases and TV episodes for rental or purchase, bestselling e-books, periodicals and music. The goal is obvious: Android users should be able to access as much of their digital content as possible from the Play Store wherever they are, tapping and swiping among Disney’s Frozen, George R.R. Martin’s Game of Thrones or Lorde’s chart-smashing Pure Heroine album on a dime.

In the call Thursday, Google bragged about landing deals for more content in Play including access to television programs from CBS (CBS) and Viacom . Google takes a commission on all sales through Play and gives the rest to app developers or copyright holders.

Google CFO Patrick Pichette, credited “apps and content” for helping lift sales in the company’s “other revenues” in the quarter by 53% year-over-year to $1.6 billion. “Other revenues” include services for businesses along with sales of its Chromebook computers.

“I think its important to step back and look at what the Google Play team has achieved,” explained Arora. “I mean its — it come from nowhere. It’s a phenomenal platform which provides services, apps, content around the world.”

About the Author
By JP Mangalindan
See full bioRight Arrow Button Icon

Latest in

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in

Man in a white shirt and jacket.
InnovationBrainstorm Tech
Marc Lore’s robots make 500 burrito bowls an hour. A human can make 45
By Amanda GerutJune 9, 2026
7 hours ago
Sam Bankman-Fried formally files for pardon—but White House reiterates that FTX cofounder’s odds are slim
CryptoSam Bankman-Fried
Sam Bankman-Fried formally files for pardon—but White House reiterates that FTX cofounder’s odds are slim
By Camila Grigera NaonJune 9, 2026
9 hours ago
A trader works on the floor of the New York Stock Exchange (NYSE) in New York, US, on Wednesday, June 3, 2026
InvestingWall Street
Wall Street dumped nearly $1 trillion in tech stocks by midday—then clawed it back and bought peanut butter and paint
By Eva RoytburgJune 9, 2026
9 hours ago
The entrance to a U.S. Immigration and Customs (ICE) detention facility
North AmericaDepartment of Homeland Security
Texas ICE facility spent $11.5 million on guards, medical services, transportation and meals weeks before the camp even held detainees, GAO finds
By Michael Biesecker, Ryan J. Foley and The Associated PressJune 9, 2026
9 hours ago
AI isn’t replacing Hyatt’s salespeople—it’s freeing up a full day of work every week, according to the CEO
AIBrainstorm Tech
AI isn’t replacing Hyatt’s salespeople—it’s freeing up a full day of work every week, according to the CEO
By Sharon GoldmanJune 9, 2026
10 hours ago
America’s grid is reeling. General Motors offers itself as a distributed utility in disguise
EnergyAutos
America’s grid is reeling. General Motors offers itself as a distributed utility in disguise
By Nick LichtenbergJune 9, 2026
10 hours ago

Most Popular

Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military
Asia
Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military
By Kate O'Keeffe and BloombergJune 8, 2026
1 day ago
'We are rapidly running out of time': Watchdog sounds Social Security alarm after 22% cut confirmed for 2032
Economy
'We are rapidly running out of time': Watchdog sounds Social Security alarm after 22% cut confirmed for 2032
By Nick LichtenbergJune 9, 2026
14 hours ago
Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there
Success
Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there
By Preston ForeJune 8, 2026
2 days ago
Trump, who has repeatedly called climate change fake, is now threatening Brazil with tariffs over the deforestation of the Amazon
Environment
Trump, who has repeatedly called climate change fake, is now threatening Brazil with tariffs over the deforestation of the Amazon
By Sasha RogelbergJune 8, 2026
1 day ago
Current price of oil as of June 8, 2026
Personal Finance
Current price of oil as of June 8, 2026
By Joseph HostetlerJune 8, 2026
2 days ago
Current price of oil as of June 9, 2026
Personal Finance
Current price of oil as of June 9, 2026
By Joseph HostetlerJune 9, 2026
18 hours ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.