iOS Apps Claim One Third of iTunes Revenue

Just 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.