Apple's App Store revenues poised to beat global movie ticket sales in 2018

Posted:
in iPhone edited January 2018
Barring a sudden drop in demand, revenues from the App Store are likely to eclipse worldwide box office revenues sometime this year, according to one analyst.




Long-term trends show that while global ticket sales are still climbing, the App Store has been growing at a much faster pace since 2012 and was already nearing equality in 2017, Asymco's Horace Dediu said in a recent blog post. Both industries are likely to hit the $40 billion mark in the near future.




The App Store calculation is based on Apple's announcement that it paid developers $26.5 billion last year. Apple typically claims a 30 percent cut from App Store transactions -- allowing for the fact that it takes only 15 percent from some subscriptions, real App Store spending is estimated to be about 43 percent higher.

The full economic value of the App Store is much higher still, Dediu noted, since many apps are just front-ends for ad-based services, or ones which otherwise don't split money through the App Store -- some examples being Amazon, Airbnb, Facebook, Google, Netflix, and Salesforce. A rough estimate for the economic worth of the App Store in 2017 is $180 billion.

The public's App Store spending has been adding about $5 billion per year since mid-2011, and has helped make apps the biggest portion of Apple's services segment, which at an estimated $57 billion last year is enough to make it a Fortune 100 company on its own.

Comments

  • Reply 1 of 11
    zoetmbzoetmb Posts: 2,490member
    I don't see what app store sales has to do with movie box-office.   You might as well compare hardware store sales to movie box-office or hardware store sales to app store sales.   Domestic ticket sales are on the decline (down 5% in 2017 from 2016), but that should be expected considering all the different ways one can see movies today, including discs, iTunes and streaming services.  Box-office revenues are somewhat more stable, but that's due to higher average ticket prices. 

    In 2017 in the U.S., box-office was about $10.971 billion (numbers vary depending upon who is providing them) and 1.2328 billion tickets were sold for an $8.90 average ticket price and 23.7 million weekly admissions.   Based on a U.S. population of 325.7 million people, 7.28% of the population saw a movie each week and each person averaged 3.78 movies per year at a theater (including children).   The top 10 grossing films took 32% of box-office revenues.

    In 2010, there were 25.81 million weekly admissions and 8.34% of the population saw a movie a week and each person averaged 4.34 films per year. 

    If we go back to the early years of TV, in 1950, there were 50 million movie admissions per week and 33% of the population saw a movie per week.  Each person averaged over 17 movies per year.   But that pales as compared to pre-TV 1946, when there were 86 million weekly admissions per week and over 61% of the population saw a movie a week and each person saw an average of almost 32 movies per year.   Domestic box-office was $1.692 billion, which is the equivalent of $22.3 billion in 2017 dollars, so the domestic business is half what it was in 1946 on a much larger population (326 million vs. 140 million).  
    muthuk_vanalingam
  • Reply 2 of 11
    tzeshantzeshan Posts: 2,047member
    Since Android market share is over 85%, iOS market share is less than 15%. So in the long term Google will make five times more from Android App Store than Apple earn from App Store. May be Google is already making at least twice more than Apple? 
  • Reply 3 of 11
    tzeshan said:
    Since Android market share is over 85%, iOS market share is less than 15%. So in the long term Google will make five times more from Android App Store than Apple earn from App Store. May be Google is already making at least twice more than Apple? 
    You are right! But the only truth is reality. iOS's users expend more than 5 times more money than Android's users, so your conclusion is already reverted.

    LukeCagewatto_cobra1983jony0
  • Reply 4 of 11
    glynhglynh Posts: 132member
    tzeshan said:
    Since Android market share is over 85%, iOS market share is less than 15%. So in the long term Google will make five times more from Android App Store than Apple earn from App Store. May be Google is already making at least twice more than Apple? 
    You think? Maybe before you post a crock you might like to do a little research, quote; As per a report compiled by Sensor Tower, users spent approximately $58.6 billion on apps in 2017 across the Android and iOS platform, but a major share of that eye-watering amount fell on Apple’s side of the app ecosystem. It is a well-known fact that the number of Android users dwarf iOS subscribers by a very hefty margin, but the revenues generated from the rival OS’s app directories is an altogether different story. You might be wondering how wide the revenue gap actually is? Well, the revenue generated by the App Store in 2017 is nearly double that of the Play Store. According to Sensor Tower’s analysis, users hooked to the iOS platform spent an estimated $38.5 billion on apps in 2017, a figure that includes the up-front cost of paid apps, in-app purchases and subscriptions. On the other hand, Android users spent around $20.1 billion on apps downloaded from the Play Store. But it’s not just the gross financial figures where the App Store has left the Play Store to bite the dust, as the net revenue growth rate is another domain where the App Store beat the Play Store, albeit by a smaller margin. On a year-on-year basis, the revenues generated by Apple’s app directory grew by 34.7%, which is barely higher than the 34.2% gross revenue increment recorded by the Play Store on an annual basis. Gaming was yet another area where the App Store’s financial game proved to be much stronger than the Play Store’s, as iOS games generated approximately $30 billion in revenues, while Android games could only amass $18 billion in 2017. However, when it comes to net app downloads, the numbers are strictly in Google’s favor as the Play Store accounted for 64 billion app downloads in 2017, while the App Store lagged much farther behind with just 28 billion downloads. But what can one say, Apple emerged as the winner in the areas which appear to be more significant, and that’s where the proverbial mic should be dropped. Edit: Apologies...even though I have chapter breaks between the 8 paragraphs including this one AI seems to have lumped it all together...
    edited January 2018 LukeCagewatto_cobramuthuk_vanalingam
  • Reply 5 of 11
    zoetmb said:
    I don't see what app store sales has to do with movie box-office.

    Nothing! You are right. You maybe just need to get to Horace Dediu's kind of analysis. You can find it in asymco.com. (I think this is a very interesting site, this is the only reason why I referring it.)

    He ‘compares’ and analyze evolutions in markets.
    All this began from iTunes Store (an ‘entertainment’ selling store) that was transformed when the AppStore was introduced.
    Then, he compares evolutions. And from the ‘ententaiment’ times he began comparing Hollywood and Apps.

    One of the points of his analysis is to show that just a part of the Services of Apple, Inc., is bigger that a whole industry (well, the box office part).

    I see two problems in the future for his analysis:
    1- Apple says that ‘the future of TV is apps’ (like Netflix app, Hulu app, etc.) so how would it be posible to ‘separate’ the AppStore evolution of the app part of the entertainment business?
    2- If Apple really get a successful intro and permanence in the content making market for entertainment, the previous question holds double.

    Once again, it non-sense to compare Hollywood to AppStore.
    But who can limit us in our comparisons?
  • Reply 6 of 11
    tzeshantzeshan Posts: 2,047member
    glynh said:
    tzeshan said:
    Since Android market share is over 85%, iOS market share is less than 15%. So in the long term Google will make five times more from Android App Store than Apple earn from App Store. May be Google is already making at least twice more than Apple? 
    You think? Maybe before you post a crock you might like to do a little research, quote; As per a report compiled by Sensor Tower, users spent approximately $58.6 billion on apps in 2017 across the Android and iOS platform, but a major share of that eye-watering amount fell on Apple’s side of the app ecosystem. It is a well-known fact that the number of Android users dwarf iOS subscribers by a very hefty margin, but the revenues generated from the rival OS’s app directories is an altogether different story. You might be wondering how wide the revenue gap actually is? Well, the revenue generated by the App Store in 2017 is nearly double that of the Play Store. According to Sensor Tower’s analysis, users hooked to the iOS platform spent an estimated $38.5 billion on apps in 2017, a figure that includes the up-front cost of paid apps, in-app purchases and subscriptions. On the other hand, Android users spent around $20.1 billion on apps downloaded from the Play Store. But it’s not just the gross financial figures where the App Store has left the Play Store to bite the dust, as the net revenue growth rate is another domain where the App Store beat the Play Store, albeit by a smaller margin. On a year-on-year basis, the revenues generated by Apple’s app directory grew by 34.7%, which is barely higher than the 34.2% gross revenue increment recorded by the Play Store on an annual basis. Gaming was yet another area where the App Store’s financial game proved to be much stronger than the Play Store’s, as iOS games generated approximately $30 billion in revenues, while Android games could only amass $18 billion in 2017. However, when it comes to net app downloads, the numbers are strictly in Google’s favor as the Play Store accounted for 64 billion app downloads in 2017, while the App Store lagged much farther behind with just 28 billion downloads. But what can one say, Apple emerged as the winner in the areas which appear to be more significant, and that’s where the proverbial mic should be dropped. Edit: Apologies...even though I have chapter breaks between the 8 paragraphs including this one AI seems to have lumped it all together...
    OK Thanks for the numbers. Now I am confident to say my observations. I think the reason behind this market share discrepancy is due to the lack of Apple ID on Android platforms. I mean Google ID. It seems because of the inherent implementation difference between iOS and Android OS, Google will never be able to copy Apple with a Google ID. 
  • Reply 7 of 11
    tzeshan said:
    Since Android market share is over 85%, iOS market share is less than 15%. So in the long term Google will make five times more from Android App Store than Apple earn from App Store. May be Google is already making at least twice more than Apple? 
    Well, Google is valued by Wall Street double what Apple is valued in terms of P/E, so it may be quite possible. Apple's puny market share certainly doesn't get much respect.
  • Reply 8 of 11
    Rayz2016Rayz2016 Posts: 4,784member
    tzeshan said:
    glynh said:
    tzeshan said:
    Since Android market share is over 85%, iOS market share is less than 15%. So in the long term Google will make five times more from Android App Store than Apple earn from App Store. May be Google is already making at least twice more than Apple? 
    You think? Maybe before you post a crock you might like to do a little research, quote; As per a report compiled by Sensor Tower, users spent approximately $58.6 billion on apps in 2017 across the Android and iOS platform, but a major share of that eye-watering amount fell on Apple’s side of the app ecosystem. It is a well-known fact that the number of Android users dwarf iOS subscribers by a very hefty margin, but the revenues generated from the rival OS’s app directories is an altogether different story. You might be wondering how wide the revenue gap actually is? Well, the revenue generated by the App Store in 2017 is nearly double that of the Play Store. According to Sensor Tower’s analysis, users hooked to the iOS platform spent an estimated $38.5 billion on apps in 2017, a figure that includes the up-front cost of paid apps, in-app purchases and subscriptions. On the other hand, Android users spent around $20.1 billion on apps downloaded from the Play Store. But it’s not just the gross financial figures where the App Store has left the Play Store to bite the dust, as the net revenue growth rate is another domain where the App Store beat the Play Store, albeit by a smaller margin. On a year-on-year basis, the revenues generated by Apple’s app directory grew by 34.7%, which is barely higher than the 34.2% gross revenue increment recorded by the Play Store on an annual basis. Gaming was yet another area where the App Store’s financial game proved to be much stronger than the Play Store’s, as iOS games generated approximately $30 billion in revenues, while Android games could only amass $18 billion in 2017. However, when it comes to net app downloads, the numbers are strictly in Google’s favor as the Play Store accounted for 64 billion app downloads in 2017, while the App Store lagged much farther behind with just 28 billion downloads. But what can one say, Apple emerged as the winner in the areas which appear to be more significant, and that’s where the proverbial mic should be dropped. Edit: Apologies...even though I have chapter breaks between the 8 paragraphs including this one AI seems to have lumped it all together...
    OK Thanks for the numbers. Now I am confident to say my observations. I think the reason behind this market share discrepancy is due to the lack of Apple ID on Android platforms. I mean Google ID. It seems because of the inherent implementation difference between iOS and Android OS, Google will never be able to copy Apple with a Google ID. 
    What the f… Have you been drinking? 
    edited January 2018 Cesar Battistini Mazierojony0
  • Reply 9 of 11
    tzeshantzeshan Posts: 2,047member
    Rayz2016 said:
    tzeshan said:
    glynh said:
    tzeshan said:
    Since Android market share is over 85%, iOS market share is less than 15%. So in the long term Google will make five times more from Android App Store than Apple earn from App Store. May be Google is already making at least twice more than Apple? 
    You think? Maybe before you post a crock you might like to do a little research, quote; As per a report compiled by Sensor Tower, users spent approximately $58.6 billion on apps in 2017 across the Android and iOS platform, but a major share of that eye-watering amount fell on Apple’s side of the app ecosystem. It is a well-known fact that the number of Android users dwarf iOS subscribers by a very hefty margin, but the revenues generated from the rival OS’s app directories is an altogether different story. You might be wondering how wide the revenue gap actually is? Well, the revenue generated by the App Store in 2017 is nearly double that of the Play Store. According to Sensor Tower’s analysis, users hooked to the iOS platform spent an estimated $38.5 billion on apps in 2017, a figure that includes the up-front cost of paid apps, in-app purchases and subscriptions. On the other hand, Android users spent around $20.1 billion on apps downloaded from the Play Store. But it’s not just the gross financial figures where the App Store has left the Play Store to bite the dust, as the net revenue growth rate is another domain where the App Store beat the Play Store, albeit by a smaller margin. On a year-on-year basis, the revenues generated by Apple’s app directory grew by 34.7%, which is barely higher than the 34.2% gross revenue increment recorded by the Play Store on an annual basis. Gaming was yet another area where the App Store’s financial game proved to be much stronger than the Play Store’s, as iOS games generated approximately $30 billion in revenues, while Android games could only amass $18 billion in 2017. However, when it comes to net app downloads, the numbers are strictly in Google’s favor as the Play Store accounted for 64 billion app downloads in 2017, while the App Store lagged much farther behind with just 28 billion downloads. But what can one say, Apple emerged as the winner in the areas which appear to be more significant, and that’s where the proverbial mic should be dropped. Edit: Apologies...even though I have chapter breaks between the 8 paragraphs including this one AI seems to have lumped it all together...
    OK Thanks for the numbers. Now I am confident to say my observations. I think the reason behind this market share discrepancy is due to the lack of Apple ID on Android platforms. I mean Google ID. It seems because of the inherent implementation difference between iOS and Android OS, Google will never be able to copy Apple with a Google ID. 
    What the f… Have you been drinking? 
    I have never used an Android, I have no idea whether there is an equivalent Google ID on Android phone. 
  • Reply 10 of 11
    Rayz2016Rayz2016 Posts: 4,784member
    tzeshan said:
    Rayz2016 said:
    tzeshan said:
    glynh said:
    tzeshan said:
    Since Android market share is over 85%, iOS market share is less than 15%. So in the long term Google will make five times more from Android App Store than Apple earn from App Store. May be Google is already making at least twice more than Apple? 
    You think? Maybe before you post a crock you might like to do a little research, quote; As per a report compiled by Sensor Tower, users spent approximately $58.6 billion on apps in 2017 across the Android and iOS platform, but a major share of that eye-watering amount fell on Apple’s side of the app ecosystem. It is a well-known fact that the number of Android users dwarf iOS subscribers by a very hefty margin, but the revenues generated from the rival OS’s app directories is an altogether different story. You might be wondering how wide the revenue gap actually is? Well, the revenue generated by the App Store in 2017 is nearly double that of the Play Store. According to Sensor Tower’s analysis, users hooked to the iOS platform spent an estimated $38.5 billion on apps in 2017, a figure that includes the up-front cost of paid apps, in-app purchases and subscriptions. On the other hand, Android users spent around $20.1 billion on apps downloaded from the Play Store. But it’s not just the gross financial figures where the App Store has left the Play Store to bite the dust, as the net revenue growth rate is another domain where the App Store beat the Play Store, albeit by a smaller margin. On a year-on-year basis, the revenues generated by Apple’s app directory grew by 34.7%, which is barely higher than the 34.2% gross revenue increment recorded by the Play Store on an annual basis. Gaming was yet another area where the App Store’s financial game proved to be much stronger than the Play Store’s, as iOS games generated approximately $30 billion in revenues, while Android games could only amass $18 billion in 2017. However, when it comes to net app downloads, the numbers are strictly in Google’s favor as the Play Store accounted for 64 billion app downloads in 2017, while the App Store lagged much farther behind with just 28 billion downloads. But what can one say, Apple emerged as the winner in the areas which appear to be more significant, and that’s where the proverbial mic should be dropped. Edit: Apologies...even though I have chapter breaks between the 8 paragraphs including this one AI seems to have lumped it all together...
    OK Thanks for the numbers. Now I am confident to say my observations. I think the reason behind this market share discrepancy is due to the lack of Apple ID on Android platforms. I mean Google ID. It seems because of the inherent implementation difference between iOS and Android OS, Google will never be able to copy Apple with a Google ID. 
    What the f… Have you been drinking? 
    I have never used an Android, I have no idea whether there is an equivalent Google ID on Android phone. 
    And what does that have to do with anything?
  • Reply 11 of 11
    tzeshantzeshan Posts: 2,047member
    Rayz2016 said:
    tzeshan said:
    Rayz2016 said:
    tzeshan said:
    glynh said:
    tzeshan said:
    Since Android market share is over 85%, iOS market share is less than 15%. So in the long term Google will make five times more from Android App Store than Apple earn from App Store. May be Google is already making at least twice more than Apple? 
    You think? Maybe before you post a crock you might like to do a little research, quote; As per a report compiled by Sensor Tower, users spent approximately $58.6 billion on apps in 2017 across the Android and iOS platform, but a major share of that eye-watering amount fell on Apple’s side of the app ecosystem. It is a well-known fact that the number of Android users dwarf iOS subscribers by a very hefty margin, but the revenues generated from the rival OS’s app directories is an altogether different story. You might be wondering how wide the revenue gap actually is? Well, the revenue generated by the App Store in 2017 is nearly double that of the Play Store. According to Sensor Tower’s analysis, users hooked to the iOS platform spent an estimated $38.5 billion on apps in 2017, a figure that includes the up-front cost of paid apps, in-app purchases and subscriptions. On the other hand, Android users spent around $20.1 billion on apps downloaded from the Play Store. But it’s not just the gross financial figures where the App Store has left the Play Store to bite the dust, as the net revenue growth rate is another domain where the App Store beat the Play Store, albeit by a smaller margin. On a year-on-year basis, the revenues generated by Apple’s app directory grew by 34.7%, which is barely higher than the 34.2% gross revenue increment recorded by the Play Store on an annual basis. Gaming was yet another area where the App Store’s financial game proved to be much stronger than the Play Store’s, as iOS games generated approximately $30 billion in revenues, while Android games could only amass $18 billion in 2017. However, when it comes to net app downloads, the numbers are strictly in Google’s favor as the Play Store accounted for 64 billion app downloads in 2017, while the App Store lagged much farther behind with just 28 billion downloads. But what can one say, Apple emerged as the winner in the areas which appear to be more significant, and that’s where the proverbial mic should be dropped. Edit: Apologies...even though I have chapter breaks between the 8 paragraphs including this one AI seems to have lumped it all together...
    OK Thanks for the numbers. Now I am confident to say my observations. I think the reason behind this market share discrepancy is due to the lack of Apple ID on Android platforms. I mean Google ID. It seems because of the inherent implementation difference between iOS and Android OS, Google will never be able to copy Apple with a Google ID. 
    What the f… Have you been drinking? 
    I have never used an Android, I have no idea whether there is an equivalent Google ID on Android phone. 
    And what does that have to do with anything?
    Because you failed to tell me does Android smartphone has Apple ID equivalent of Google ID.  I don't think you understand the intrinsic value of Apple ID. 
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