Skip to main content

Apple Paid $14 Billion To App Developers and Record Labels

Research firm Asymco has issued a report showing that Apple's iTunes paid more than $2 billion to App developers and roughly $12 billion to record companies.

Asymco (opens in new tab) assumed that the average price of one app was 29c, that the music gross margin was 10 per cent while the app gross margin stood at 30 per cent.

The graph of cumulative payments made to iTunes suppliers, produced by the author Horace Dediu, shows that the App Store paid out its first $2 billion faster (by eight per cent) to developers than to music labels.

The analysis doesn't seem to include free content or non-music ones (like videos). Apps are likely to overtake music by the end of this quarter as far as numbers are concerned.

The number of Apple App downloads should reach 10 billion by the end of the week, but given that Apple rakes much less revenue on average (around 9c per app) than on music tracks, the latter will still attract the bulk of the money for the company.

Désiré has been musing and writing about technology during a career spanning four decades. He dabbled in website building and web hosting when DHTML and frames were en vogue and started writing about the impact of technology on society just before the start of the Y2K hysteria at the turn of the last millennium. Following an eight-year stint at where he discovered the joys of global tech-fests, Désiré now heads up TechRadar Pro. Previously he was a freelance technology journalist at Incisive Media, Breakthrough Publishing and Vnunet, and Business Magazine. He also launched and hosted the first Tech Radio Show on Radio Plus.