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October 9, 2011

The Making of the iTunes Ecosystem

During the October iPhone event Apple gave an update on the app and song download totals. This is a reliable gauge of the iTunes ecosystem performance and Apple has been supplying these numbers for several years.   By Plotting This numbers and data  gives us a good idea of the trend in mobile content consumption. 
(data Source:Asymco)




The total number of apps downloaded (excluding updates) overtook songs in June/July and continues on its trajectory. In fact, the rate of downloads for Apps is now over 1 billion / month. Given the data points above, I calculate it to be about 34 million per day. The corresponding rate for songs is 8.3 million per day.( source )

After paying the content owners, iTunes is left with about $75 million per month from apps and $85 million per month from songs. At a billion downloads a month (and rising) the value in terms of revenues is already a run rate of $2.9 billion per year. This has been enough to overtake a business that has been running for more than seven years. ( source  )
























At $2.9bn/yr apps are challenging songs as the most valuable online medium