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Music is 36% of Apple revenue, 3 billion songs sold

updated 01:40 pm EDT, Tue October 23, 2007

iTunes: 3b songs sold

Apple's iTunes Store is still dominating digital music sales in the U.S., according to one survey cited by Apple CFO Peter Oppenheimer, accounting for around 85 percent of digital sales nationwide. The Cupertino-based company on Monday during a conference call announced that it has sold a whopping 3 billion songs via the iTunes Store alongside more than 100 million TV shows; music revenues--including the iPod--accounted for 36 percent of the company's total revenue during its September quarter.

Digital music sales are increasing as customers become more familiar with the new concept of purchasing tracks online vs. physical media like DVDs and CDs. Digital music accounted for roughly 17 percent of all music sold globally during the first half of 2007, according to ISPI Market Research, up from 11 percent last year. Apple yesterday said it believes that the company's iTunes Store was instrumental in this growth, and NPD Market Research confirmed that Apple maintained its title as the third largest music retailer, beating out brick-and-mortar giant Target and online sales behemoth Amazon.




by MacNN Staff

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  1. chaaalie

    Joined: Dec 1969

    0

    iPod is Music?

    Did Apple place iPod revenues under the iTunes Music Store? It seems a little odd to report iPod revenue as "from music" when it is mostly a hardware product for Apple. (Unless Apple is creating seperate business units for music, phone, Macs and software.)

    Related to music, yes ... but that just seems misleading to say that 36% of reveune is "from music" ... at least to me that made it seem like you were talking specifically sales from iTMS.

  1. wingdo

    Joined: Dec 1969

    0

    even worse

    The live bookmark is titled ..... "iTunes: 36% of Apple Revenue"

  1. psdenno

    Joined: Dec 1969

    0

    well,,,,,

    .....since I can play music on my MacBook, let's add all the laptop revenue on the music pile, also.

  1. hokizpokis

    Joined: Dec 1969

    0

    blah blah blah

    misleading headline

    misleading article

    false logic

    just typical macnn spin...

    except spin requires an agenda

    so whats the agenda??

  1. Jonathan-Tanya

    Joined: Dec 1969

    0

    end of the RIAA

    Record companies, reason for existing, was that in olden times, you needed a manufacturing plant to create a plastic record. You needed trucks and storefronts to distribute these produced records.

    Nowadays, there is no reason for the RIAA and its members to exist. Manufacturing, of digital products, not a concern. Distribution, handled by iTunes. 17% online...will eventually be a majority online, to almost all online...the writing is on the wall.

    Would you hire a loan shark, if you didn't have to? Bands don't need the record companies...right now, people still think its your ticket to success, but all it will take is a few bands getting successful without them....then, when the general understanding is, I have a choice, to become a success like this band: and maintain control and profits...or become a success like this band: slave to record companies.

    Well, it only takes a few pioneers, and then its all over.

  1. zac4mac

    Joined: Dec 1969

    0

    Not flawed

    iTunes store sells music primarily, also audio books, movies TV shows, class lectures etc. iPods PLAY MUSIC PRIMARILY. They also play all the other stuff the iTunes Store sells/gives away.

    I have no problem with that connection, why do you?

    Z

  1. zac4mac

    Joined: Dec 1969

    0

    put it another way -

    I can "play music" with a spoon on a plate and a water goblet, does that make them musical instruments, or are they still eating utensils?

    Z

  1. Chris CA

    Joined: Dec 1969

    0

    $6 billion this quarter

    Apple did NOT sell 3 billion songs this quarter. Lets pretend it was 1 billion (not even close).

    At .99 that still only amounts to ~$1 billion which is not 34% of $6 billion.

  1. Will C

    Joined: Dec 1969

    0

    Maybe flawed figures

    But this is revenue not profit - if what I read on the internet is true (ha ha...etc) and the profit margin is tiny then they are still making most of the money from hardware.

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