X

This website uses cookies.

This website uses cookies to improve user experience. By using our website you consent to all cookies in accordance with our Cookie Policy.

I agree
Learn More
Cool Gadgets, Gizmos, Games and Geek Stuff on Technabob
AWESOMER MEDIA SITES: THE AWESOMER | MIGHTYMEGA | 95OCTANE

iTunes Costs $1.3B to Operate Each Year (Estimated)

by Shane McGlaun
Advertisement

I would bet that many people out there have purchased music or apps from iTunes at some point. Even if you don’t use the iPhone, iTunes is still the most popular digital music store around. I know that Apple keeps a chunk of the money that sellers make when they offer apps and music on iTunes to cover costs but I really had no idea what those operating costs could be.

Apparently, it costs a ton of money to operate iTunes. We know that there are 15 billion songs downloaded on iTunes, 130 million books downloaded, and 14 billion apps downloaded along with $2.5 bill paid out to developers.

Along with that data, market intelligence firm Asymco took some other figures, worked the numbers, and came up with what it thinks iTunes costs to operate. The number is a whopping $1.3 billion each year. That works out to about $113 million monthly! That is a lot of money no matter how you slice it.

In working through their estimates, Asymco figured out the what Apple gets to keep after paying content owners (shown in the graph above), then assumed that they operate at break-even, since Apple has stated that they really make their money on the hardware business, and they have alluded to the iTunes store operating “a bit over break even” on several occasions.

It doesn’t seem like offering digital goods where you don’t have a physical store should cost that much.

Deals in The Technabob Shop



Manga Realization Samurai Captain America 1/12 Scale Action Figure

Manga Realization Samurai Captain America 1/12 Scale Action Figure

Funko POP! Deadpool the Duck

Funko POP! Deadpool the Duck

Advertisement
The Man Behind the Mask

The Man Behind the Mask

World’s Greatest Drag Race 7

World’s Greatest Drag Race 7

Concepts from Future Past: 2003 Mercury Messenger

Concepts from Future Past: 2003 Mercury Messenger

Tricked-out 1990 Land Rover Defender 110 for Sale

Tricked-out 1990 Land Rover Defender 110 for Sale