Mobile Apps: Bigger Than the Music Industry?

Mobile application store GetJar, the world's second-largest app provider, crossed the one billion downloads mark this week, making it second only to powerhouse Apple.

But GetJar, which sells more than 72,000 apps on its site, is just one player in a market that has huge growth potential, CEO Ilja Laurs told CNBC Tuesday.

"There are lots of predictions that the mobile app space will actually become larger than the entire music industry in just the next three to five years," Laurs said.

Laurs added that so-called "discovery" services are a thriving source of income for sites like GetJar.

"Our application store makes a lot of money on marketing and promoting apps," he said. 'Discovery is a big issue for apps—and developers are prepared to pay for that."