Apple floats global music downloads to the tune of $3.4 billion
Apple's iTunes Music Store is already known to be one of the top contributors to the music industry's bottom line, but a new analysis pegs Apple is bolstering the digital music download market to the tune of about $3.4 billion, or 60 percent of digital revenues.
This week analyst Horace Dediu, writing for Asymco, parsed recent figures from the International Federation of the Phonographic Industry (IFPI), which represents 1,400 recording industry members across 66 countries. The IFPI reported total music revenues of $16.5 billion for 2012, marking the first growth in music revenues since 1999. Of that figure, $5.6 billion came from digital downloads.
Turning to Apple's iTunes revenues, Dediu estimates that, of the $13.5 billion Apple reported for iTunes revenues, the iTunes Music Store accounted for about $4.3 billion, of which $3.4 billion was paid to music labels. That would amount to roughly 22 percent of iTunes revenue.
Initially introduced as a means to provide easily accessible music for iPod owners, Apple's iTunes Music Store has grown into a juggernaut in the music industry. For years iTunes has been the number one music provider in the U.S., and the storefront reached a milestone in selling its 25 billionth song in early February.
Dediu estimates that iTunes music revenue is growing at about 10 percent, while App Store revenue is growing at around 50 percent. Video and other revenue, Dediu estimates, is growing at around 90 percent.
Historically, Apple has held that the App Store and iTunes Store operate at a break-even rate, as they have largely been just a value-add for Apple's high-margin hardware. Dediu points out, though, that given iTunes increasing revenues, Apple may be generating significant operating margins from software and other iTunes sales.
This week analyst Horace Dediu, writing for Asymco, parsed recent figures from the International Federation of the Phonographic Industry (IFPI), which represents 1,400 recording industry members across 66 countries. The IFPI reported total music revenues of $16.5 billion for 2012, marking the first growth in music revenues since 1999. Of that figure, $5.6 billion came from digital downloads.
Turning to Apple's iTunes revenues, Dediu estimates that, of the $13.5 billion Apple reported for iTunes revenues, the iTunes Music Store accounted for about $4.3 billion, of which $3.4 billion was paid to music labels. That would amount to roughly 22 percent of iTunes revenue.
Initially introduced as a means to provide easily accessible music for iPod owners, Apple's iTunes Music Store has grown into a juggernaut in the music industry. For years iTunes has been the number one music provider in the U.S., and the storefront reached a milestone in selling its 25 billionth song in early February.
Dediu estimates that iTunes music revenue is growing at about 10 percent, while App Store revenue is growing at around 50 percent. Video and other revenue, Dediu estimates, is growing at around 90 percent.
Historically, Apple has held that the App Store and iTunes Store operate at a break-even rate, as they have largely been just a value-add for Apple's high-margin hardware. Dediu points out, though, that given iTunes increasing revenues, Apple may be generating significant operating margins from software and other iTunes sales.
Comments
I think it's much more accurate to say that Steve Jobs and then subsequently the iTunes Music Store saved music.
Screw em- it'll be that much sweeter when they wake up one day to find half their customers gone.
[I]"A billion here, a billion there, and pretty soon you're talking about real money."[/I]
- Everett Dirksen, U.S. Senator (1951 - 1969)
From what? They're not in need of saving.
Originally Posted by dasanman69
From what? They're not in need of saving.
This post shows you have no idea what you're talking about.
Then tell me. Just because you and many here believe it's a broken model doesn't make it so. TV is profitable and not in need of 'saving' by anyone.
Originally Posted by dasanman69
TV is profitable and not in need of 'saving' by anyone.
So was music during the height of piracy (which is probably now, but you know when I mean). Beyond just the economics of the industry, television content needs a revitalization from the scores of useless dreck we see today.
Yes but the big difference is that there's very little piracy of TV. There is no Napster to easily facilitate piracy, most people have no idea what torrents are even less where to get them. While there could be better content especially from the broadcast networks, we don't need that many CSIs and Law and Orders, there's great shows on HBO, Showtime, Cinemax, AMC, A&E, etc... Thanks to Hulu Plus I was able to watch Misfits, which was one of the craziest comedies I've ever seen.