Asymco: Apple's iTunes Accounts for 75% of Global Digital Music Market
After Apple published numbers for iTunes TV show and music downloads recently, Asymco’s Horace Dediu broke down the stats to reveal the online storefront rakes in roughly $6.9 billion each year, or about 75% of all digital music sales. According to Dediu, the average iTunes holder spends about $12 per year on music reports Billboards
and with 575 million active users, Apple’s annual revenue hits $6.9 billion.
The publication notes that the IFPI set the trade value of the global digital music market in 2012 at $6.9 billion, which is about 35% of the $16.5 billion for all recorded music. To get data from consumer spending, Billboard
assumes labels net 60% of the retail price, resulting in a digital market worth $9.3 billion. This means that Apple’s $6.9 billion account for about 75% of the $9.3 billion global music market. The remaining slice of the pie is divvied up to streaming music services such as Pandora and retailers like Amazon.
Apple however, recently announced its own Internet radio streaming service, dubbed iTunes Radio, which is an ad-supported service that has built-in links to purchase songs directly from the iTunes store. The feature still has yet to roll out to the public but as of right now, it remains to be seen whether Apple’s system will be a strong competitor against already established apps.