iTunes Business Review Report

  • iTunes Business Review Report
  • iTunes Business Review Report
  • Report Data Index
  • Table Of Contents

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By Horace Dediu

The iTunes Music store opened more than ten years ago. It has come to sell not just music but TV Shows, Movies, ebooks and Apps. It has evolved and grown in ways that are becoming difficult to grasp. Consider some of these numbers:


It's a juggernaut whose power over the music and software industries has been challenged as unfair or unsustainable. And yet, it began as something Apple billed as "running at break-even". It is still largely ignored as a business and treated as something that supports Apple's device sales.

But if it does support hardware, why is it something no other hardware vendor has tried to replicate? Why do those with digital content stores like Amazon and Google's Play not tout their successes in terms of sales and payments to content owners?

It seems to be something of an enigma. It's irrelevant by some measures, suffocatingly powerful by others.

What has iTunes become?
This report attempts to answer this question with an in-depth review of iTunes. As Apple re-organized the division at the end of 2013 it signaled a new importance for the group. It also offers us a new way of understanding and forecasting the business.
The data and discussion cover:
- Sources of Revenue 
- Cost Structure
- Profitability
- Context in overall business
- Each content type analyzed in terms of units, pricing, revenues, cost structure and contribution
- Discussion of Apple's own Software group
- 4 quarter forecast

Formats

Report: Downloadable* PDF file
Report Data: Downloadable* Excel File

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