Music Business

iTunes Payments Account For 60% Of Total Digital Music Revenue [ANALYSIS]

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A new analysis by Horace Dediu at Asymco concludes that iTunes accounted for 60% of total music industry digital revenues in 2012. "Apple regularly reports iTunes as a separate revenue item and occasionally it also reports payments data for developers and app download rates," wrote Dediu. "By interpolating the data published and combining it with some assumptions it’s possible to estimate the mix of revenues (and costs) associated with iTunes." Here's how Dediu arrived at 60%:

  • The International Federation of the Phonographic Industry (IFPI) reported that 2012 global digital music revenues were $5.6 billion or 34% of total record music industry revenue.
  • iTunes music sold an estimated $4.3 billion of which $3.4 billion was paid to rightsholders.

"Looking at growth, these estimates imply that App revenues are growing at about 50% while iTunes Music is at 10% and Video+other at 90%", according to Dediu.


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1 Comment

  1. This calculation doesn’t account for sales tax does it? i.e. shouldn’t the royalty pay out be calculated as a % of net sales after sales tax is deducted? not gross before.

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