iOS Apps Claim One Third of iTunes Revenue

iOS Apps Claim One Third of iTunes Revenue 300x249 iOS Apps Claim One Third of iTunes RevenueJust how significant are iOS apps to the overall profitability of iTunes? Very. That much is clear from a new report by Asymco analyst Horace Dediu.

In accordance with the findings, we can confidently project that iOS apps are now responsible for driving one-third of all iTunes revenues.

Among other notable discoveries:

  • The iTunes economy defined as gross revenues transacted through it is now about $12 billion/yr.
  • Over the last five years content owners (media and app) received a total of $24 billion while Apple spent about $10 billion to create those sales
  • Seen as a retail business, iTunes costs about $3.5 billion/yr to operate. This includes merchandising, payment processing and “shipping & handling”.
  • Total revenues have risen steadily in a range of 32 to 38% compounded over the last 4 years.
  • Non-app media still make up 2/3 of iTunes in terms of sales value but their growth is now 28% vs. about 50% for apps.

To read the fascinating report and review all corresponding charts, click here.



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