Angry Birds have their wings clipped; Rovio says its operating profits dropped 73% last year

Angry Birds have their wings clipped; Rovio says its operating profits dropped 73% last year
If you ever need a case study on the downside of overexposure, you need not look any further than the Angry Birds' story. Two years ago, the foul fowl were everywhere with their image licensed for lunchboxes, kids' clothing, underwear, board games, Band Aids and more. You couldn't walk two feet inside any Walmart without seeing the Angry Birds staring out at you from some product. An Angry Birds store opened in 2011.

With the original Angry Birds game launched in 2009 by Rovio, spin offs include Angry Birds Star Wars (I & II), Angry Birds Rio, Angry Birds Space and Angry Birds Transformers to name a few. Rovio says that the original Angry Birds game is the most downloaded paid app of all time.

But the appeal of Angry Birds has been waning. Rovio reported a steep 73% drop in operating profits for 2014 due to a sharp decline in licensing revenue. The company reported operating profits of $10.8 million USD for all of last year, compared to $39.3 million in 2013 and $82.7 million in 2012. At the peak of the Angry Birds' success, Rovio hoped that it could use the characters to become a huge entertainment company like Disney, with a stable of popular characters it could license out. An animated movie that took years to finish is still expected to hit theaters next year.

While overall revenue was down 9% for the year to $171 million USD, revenue attributable to mobile games rose 16% to $119.3 million thanks to titles like Jolly Jam and Angry Birds Stella Pop! For the year, Rovio games were downloaded more than 600 million times.

source: Reuters



1. Metropolis75

Posts: 197; Member since: Aug 28, 2012

As much as I loved playing those games before, I can't be bothered to even tap on the app anymore. Just no desire to.

2. hurrycanger

Posts: 1765; Member since: Dec 01, 2013

Yea I used to like them a lot. Space was my favorite.

3. Johnnokia

Posts: 1158; Member since: May 27, 2012

They were in the top for years, but they stopped developing or came with stunning new games. Rovio is Finnish, and it unfortunately behaved like the former giant Finnish phones manufacturer.

11. TylerGrunter

Posts: 1544; Member since: Feb 16, 2012

They remember be more what happened to Zynga (farmville and the rest). They created a very succesfull game (even if some of us hated it) but were unable to come up again with something original.

4. JaneChenLong

Posts: 374; Member since: Mar 18, 2015

People got bored playing the same game over and over and over.... Rovio can't expect we play the same game over and over and over again, they need to innovate something new.

5. Kruze

Posts: 1285; Member since: Dec 30, 2014

This kind of situation is simliar to the K-Popper we all know, Psy. Psy used to be very popular with it's Gangnam Style but after that things are starting to go down on Gentleman and Hangover which is even worse. I used to like Angry Birds a lot, but now it's kinda boring now. The last Angry Birds game I played was Angry Birds Go. An Angry Birds Movie would be awesome, I will definitely watch it though.

6. Busyboy

Posts: 732; Member since: Jan 07, 2015

Nice typo in the title PA. Good to know you edit before posting

7. GeorgeDao123

Posts: 432; Member since: Aug 20, 2013

Seems like no one is surprised.

8. sepultura

Posts: 16; Member since: Oct 19, 2014

space impact is the best game in mobile ever

9. charlesxph

Posts: 35; Member since: Jan 04, 2015

Well, its basically their fault. They should have done something different, not a rebake of the original.

10. livyatan

Posts: 867; Member since: Jun 19, 2013

Meanwhile at Supercell..

15. downphoenix

Posts: 3165; Member since: Jun 19, 2010

They'll have their day coming. Zynga had it's day, Rovio is having theirs right now, Supercell and will be coming in the future.

12. TechDork

Posts: 404; Member since: May 10, 2010

I come & go & new games come about. Angry Birds was a total hit for a long time, but the demise of it was soon to happen, just like Monument Valley is soon to hit the bottom if they don't release more levels soon.

14. JaneChenLong

Posts: 374; Member since: Mar 18, 2015

i don't think more level will help. after a while, people got bored, and they want something completely new.

13. namesib

Posts: 97; Member since: Feb 08, 2015

Good. F your aggressive IAP strategy. That racing game they created was absolutely disgraceful.

16. Univice

Posts: 39; Member since: Jun 15, 2010

I was playing one version or another of Angry Birds almost daily - until they started forcing videos between rounds which was annoying enough, but that they used system sound sound even though the games sound was turned off - making it impossible to play the game unobtrusively in mixed company without wearing headphones or turning my devices sound off. With these annoying surprises I quit playing all Angry Birds games - altogether.

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