Good observation. There's very little in the iTunes Store that is free, unlike the App Store. And didn't we recently hear that a large chunk of the revenue is from a few players in games that use IAPs?
I find the figure of $13 per user per year for the iTunes Store suspect - it seems so low!
In an ideal world, Apple will be able to encourage people to spend more on music each year to help revitalise the music industry.
Good observation. There's very little in the iTunes Store that is free, unlike the App Store. And didn't we recently hear that a large chunk of the revenue is from a few players in games that use IAPs?
Yeah, for some reason free-to-play has taken off in a big way and not just in mobile. League of Legends is a desktop example, which made over $0.6b last year.
$1.88b in 2013 but not all from iOS. That game alone will contribute 1/10th-1/20th of Apple's entire App Store revenue.
The Angry Birds devs didn't go free-to-play originally but switched to it with their racing game. They're all just chasing money now rather than making good games.
Radio is kind of like this model where you listen to music and then try to monetize people in a variety of ways either through ad impressions or subscriptions.
I find the figure of $13 per user per year for the iTunes Store suspect - it seems so low!
It will average over a lot of people who are barely buying any music. There's no distinction between an account for buying on iTunes and one for buying on the App Store so they'd just take however many hundredd million users and split the estimated revenue between them. It could end up being the case that only a fraction of the accounts are buying music in which case the amount per user would be a lot higher.
Good observation. There's very little in the iTunes Store that is free, unlike the App Store. And didn't we recently hear that a large chunk of the revenue is from a few players in games that use IAPs?
Yeah, for some reason free-to-play has taken off in a big way and not just in mobile. League of Legends is a desktop example, which made over $0.6b last year.
$1.88b in 2013 but not all from iOS. That game alone will contribute 1/10th-1/20th of Apple's entire App Store revenue.
The Angry Birds devs didn't go free-to-play originally but switched to it with their racing game. They're all just chasing money now rather than making good games.
Radio is kind of like this model where you listen to music and then try to monetize people in a variety of ways either through ad impressions or subscriptions.
Quote:
Originally Posted by Benjamin Frost
I find the figure of $13 per user per year for the iTunes Store suspect - it seems so low!
It will average over a lot of people who are barely buying any music. There's no distinction between an account for buying on iTunes and one for buying on the App Store so they'd just take however many hundredd million users and split the estimated revenue between them. It could end up being the case that only a fraction of the accounts are buying music in which case the amount per user would be a lot higher.
Apple must be wondering when the gold rush of IAPs will end. Perhaps it will flourish. But it's a real phenomenon - crazy!
Your point about music seems likely to me. I wouldn't be surprised if there were swathes of people who never bought anything on iTunes.
Comments
Good observation. There's very little in the iTunes Store that is free, unlike the App Store. And didn't we recently hear that a large chunk of the revenue is from a few players in games that use IAPs?
I find the figure of $13 per user per year for the iTunes Store suspect - it seems so low!
In an ideal world, Apple will be able to encourage people to spend more on music each year to help revitalise the music industry.
Yeah, for some reason free-to-play has taken off in a big way and not just in mobile. League of Legends is a desktop example, which made over $0.6b last year.
Candy Crush's revenue is insane:
http://wiiudaily.com/2014/05/candy-crush-revenue-vs-nintendo/
$1.88b in 2013 but not all from iOS. That game alone will contribute 1/10th-1/20th of Apple's entire App Store revenue.
The Angry Birds devs didn't go free-to-play originally but switched to it with their racing game. They're all just chasing money now rather than making good games.
Radio is kind of like this model where you listen to music and then try to monetize people in a variety of ways either through ad impressions or subscriptions.
It will average over a lot of people who are barely buying any music. There's no distinction between an account for buying on iTunes and one for buying on the App Store so they'd just take however many hundredd million users and split the estimated revenue between them. It could end up being the case that only a fraction of the accounts are buying music in which case the amount per user would be a lot higher.
Good observation. There's very little in the iTunes Store that is free, unlike the App Store. And didn't we recently hear that a large chunk of the revenue is from a few players in games that use IAPs?
Yeah, for some reason free-to-play has taken off in a big way and not just in mobile. League of Legends is a desktop example, which made over $0.6b last year.
Candy Crush's revenue is insane:
http://wiiudaily.com/2014/05/candy-crush-revenue-vs-nintendo/
$1.88b in 2013 but not all from iOS. That game alone will contribute 1/10th-1/20th of Apple's entire App Store revenue.
The Angry Birds devs didn't go free-to-play originally but switched to it with their racing game. They're all just chasing money now rather than making good games.
Radio is kind of like this model where you listen to music and then try to monetize people in a variety of ways either through ad impressions or subscriptions.
I find the figure of $13 per user per year for the iTunes Store suspect - it seems so low!
It will average over a lot of people who are barely buying any music. There's no distinction between an account for buying on iTunes and one for buying on the App Store so they'd just take however many hundredd million users and split the estimated revenue between them. It could end up being the case that only a fraction of the accounts are buying music in which case the amount per user would be a lot higher.
Apple must be wondering when the gold rush of IAPs will end. Perhaps it will flourish. But it's a real phenomenon - crazy!
Your point about music seems likely to me. I wouldn't be surprised if there were swathes of people who never bought anything on iTunes.
Thanks for this original data for Apple app store revenue. Its a great news that app store becoming more popular than Apple iTunes.