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 Phone and tablet-based mobile products from newcomers like Germany's
Babbel, Britain's Memrise and U.S.-based Duolingo have overtaken
names like Berlitz and computer self-learning pioneer Rosetta Stone
in terms of audience, if not yet sales or teaching sophistication,
market researchers say.
Tens of millions of users are being drawn to the flexibility of
practising vocabulary or conversation on the go, either as part of a
serious course of study or simply a more productive alternative to
casual video gaming.
"It is a matter of incremental convenience: smartphone apps offer a
wide selection of content that is more easily accessible, anytime,
anywhere," said Ed Cooke, founder of London-based Memrise, whose
language apps are mostly free.
The best mobile apps use voice recognition, email reminders and
insights from the psychology of mobile games and cognitive science
to keep entry-level as well as advanced users coming back for a few
minutes of practice each day.
These low-cost products are forcing a rethink by publishers, tutors
and suppliers of classroom teaching tools who have long counted on
charging double-digit dollar prices for books or hundreds of dollars
for courses.
Established companies in the sector are scrambling to make their
existing print, software and online products more mobile or
retrenching to higher-end courses aimed at businesses or schools so
as not to have to compete with free or low-cost apps.
The rise of mobile apps is denting sales in the overall market, said
Sam Adkins, chief research officer of research firm Ambient Insight.
"The language-learning market is declining in terms of revenue due
primarily to the adoption of less expensive, technology-based
products," he said.
Global sales of language tools and services are expected to dip 2.1
percent to $56.3 billion by 2018, compared with 2014, according to
Ambient. Meanwhile, the mobile share should climb 73 percent to
around $14.5 billion by 2019, it estimates.
FEARS FOR FUTURE
Under pressure from new competitors, Rosetta Stone, which
popularized language self-learning with CD boxsets selling for$200,
has been restructuring to focus more on business and school sales
rather than consumers. To catch up in mobile, it bought LiveMocha, a
free online learning site, and created Apple and Android phone apps
that give away a bit of content for free in a bid to draw
intermediate users to commit to longer courses.
Virginia-based Rosetta's share price has plunged 77 percent since
its stock market flotation in 2009. Recently, it saw its
second-quarter revenue fall 10 percent to $51.4 million, with sales
at its consumer business dropping 26 percent.
Berlitz, another grand name in language training now owned by
Britain's Apa Publishing, gave a bleak assessment of the outlook for
many established providers.
Chief Executive Rene Frey said it did not make sense for publishers
to invest further in expert language content as users flock to
mostly free content on the web, served up by Google Translate,
crowd-sourced dictionaries such as LEO of Germany or low-cost
digital companies like Babbel. Instead, Apa is focused on expanding
its Insight line of travel guides and phrasebooks.
"Some publishers are trying to become premium-product suppliers. But
it is very difficult for them to be as innovative as these
technology companies," Frey said.
"I just don't see how much future there is for publishers.”
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The most popular mobile apps help users with written vocabulary or
sentence fill-ins but also give them conversational practice,
talking back to their phones - safer, at least for starters, than
grilling by a punctilious teacher.
Berlin-based Babbel, whose founders previously ran a music-mixing
software business that remains one of the more popular programs used
by professional DJs, embarked on language training in 2007 to fill
an online market void.
It has attracted tens of million of users and has 120,000 downloads
a day of its apps, which come in 14 languages.
LESS IS MORE?
Babbel says it has been profitable since 2011, doubling revenue each
year since. Users pay, on average, about $6 a month for
subscriptions. That has made it the highest-grossing language app
supplier in most European countries on the Apple and Google Play
stores, according to research firm AppAnnie.
Chief Executive Markus Witte said Babbel quickly found that it was
not how much one could learn in one sitting, but how little. "Binge
learners tend not to come back," he said. "People who learn a little
tend to come back more regularly."
Duolingo, the top language app globally in terms of users, asks
users to pick a goal, from five minutes a day for casual users to 20
minutes daily for "insane" users, then sets them off on short
vocabulary and sentence completion games.
Pittsburgh-based Duolingo has attracted more than $83 million in
financing from top Silicon Valley venture capitalists and Hollywood
actor-turned-tech investor Ashton Kutcher since its founding in
2011. It says it has up to 100 million users.
While keeping its services free to consumers, it has yet to settle
on a sustainable revenue-generating model, having shifted recently
from seeking to charge media companies for translation services to
becoming more of a resource for schools.
Language teachers are coming to accept the apps as useful vocabulary
builders and for conversational practice but say they are no
substitute for interaction with a knowledgeable teacher when it
comes to grammar and sustaining motivation.
Angelika Davey, a native German language tutor living in Wiltshire
in England, says that with the rise of language apps, fewer students
are interested in committing to weekly classes. She has stopped
advertising with flyers in her local community and instead finds
students online, via social media or Skype.
"Students are different now. People are quite happy to work on their
own," she said. "But they do need a port of call to discuss thing
with when they get stuck or things go wrong with books or apps."
(Editing by Pravin Char)
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