IPad Users Spend $70,000 Per Day on Newsstand Content
Turns out Apple’s iPad generates a sizable amount of money for publishers through Newsstand. Well, at first at least.
According to a study by analytics firm Distimo users spend about $70,000 each day on tablet-optimized newspapers and magazines through Newsstand. This translates to roughly $25.5 million in yearly sales through Apple’s online content store.
Now, Business Insider plays Devil's Advocate and takes into consideration Apple has sold 65 million iPads and Newsstand is generating $70,000 a day. This equates to the average user spending $.001 a day on magazines or newspapers. Even more depressing, this means the average user is only spending $.37 a year on magazines or newspapers.
Still, Distimo claims Newsstand has helped push digital publication sales. News apps account for about 7% of the top 200 grossing apps with most of the revenue coming from in-app purchases. Another point to take in, Apple rakes in 30% off the top of these revenues meaning that $25.5 million a year is really closer to $16 million a year.
I guess depending on how you spin this data, the digital rebirth of The New York Times and other traditional media outlets on the iPad isn’t looking too bright.
Source: Business Insider