1 Star2 Stars3 Stars4 Stars5 Stars (Rate This)
Loading...

An interesting report from Asymco estimates that it costs Apple US$1.3 billion per year to run the iTunes store and the sum was reached by examining known numbers, like the total number of songs, movies, TV shows and apps that have been downloaded, plus the number of iTunes accounts and how much Apple has paid out to developers…………..

 

Apple spends approximately $1.3 billion per year or $113 million each month to run iTunes and its App Store and Apple probably isn’t making as much money off of all those downloads as you think it is. There are 225 million iTunes account holders, which is an astronomical figure given that the service has only been operating since April 2003. But iTunes is still only at the break-even point. All of those users account for 15 billion song downloads every year. In addition, they buy 130 million books, 14 billion apps and about 100,000 games. That’s a lot of money exchanging hands. Something like $313 million every month. But, given Apple‘s deals with music labels to secure the rights to all of that music it’s offering in the iTunes store and the $2.5 billion we know the company has paid out to developers, a figure that was revealed just last week at the Worldwide Developers Conference, the content margin is only about $113 million.

 

 

That money, the $113 million every month that Apple is bringing in (far more comes from app downloads than music downloads), is spent on support, curation, traffic and payment processing. Whatever is leftover, Asymco suggests, is “invested in capacity increases.” That is, adding to the massive server farms that are required to store all of the available content and acquiring new material. The data that Apple published in the last event included the following:

  • 15 Billion iTunes song downloads
  • 130 million book downloads
  • 14 billion app downloads
  • $2.5 billion paid to developers
  • 225 million accounts
  • 425k apps
  • 90k iPad apps
  • 100k game and entertainment titles
  • 50 million game center accounts

As this data is added to the existing data and cross-referenced additional insight into the economics of iTunes is emerging.

 

Thanks: (1),(2)

Buy Cheapest Related Product From Amazon.com


J.C. Penney Will Be Apple’s Next Chief Executive Officer

Samsung Galaxy Tab 10.1 Will Take Flight On American Airlines
You can also press the left/right arrow key on your keyboard to go to previous/next post
  On June 15, 2011(5 years, 3 months ago.)

You May Also Like:

What Do You Think?

Leave a Reply




Loading Facebook Comments ...

FTC Disclosure: Some of the links of this website are "affiliate links." This means if you click on the link and purchase the item, we will receive an affiliate commission.


Recent Search

Recent Tutorials

There is a high-risk XSS Vulnerability in W3 Total Cache, and we have got the guide to the fix for you.
Check out this tutorial to know how to install Apple watchOS 3 beta certificate on your Apple Watch and start enjoying the new version.
If you are trying to jailbreak iPhone, iPad or iPod on iOS 9.2 - 9.3.3 without using a computer or Apple ID, then check this video tutorial.
Pokemon Go users are complaining about the crashing and server issues. Check out the tutorial to solve error problems and thanks us later.
Turning off Wi-Fi Assist is a great way to save mobile data since it automatically starts using cellular data when Wi-Fi signal is poor .
If you want to secure your SIM card from others using it, then check out this tutorial to know how to set up the SIM Pin code on your iPhone.
CiderTV is a great alternative to control Apple TV from the Notification Center. Check out this tutorial to set up CiderTV on your iPhone.
Are you annoyed by the split screen mode on the iPhone 6 Plus or 6s Plus? Check out this quick tutorial to turn off split screen feature.
If you could not wait to installed the iOS 10 beta version on you iPhone and now struggling for the errors, then this tutorial is for you.
Siri might not understand the question you asked. But you can use Siri by editing the text that you asked & it will give an updated answer.
Close You Have To Login
User:
Pass:
Login With »Login With TwitterLogin With Facebook