updated 03:42 pm EST, Mon November 26, 2012
iTunes card business estimated to be worth over $260M to third parties
Digital iTunes Store gift cards are now on sale through Facebook Gifts, Facebook has announced. Cards can be bought in $10, $15, $25, and $50 denominations, and are the same as sending a "virtual" card to someone directly from iTunes. When sending a card, buyers also have the option of recommending specific content, including albums, songs, e-books, movies, games, and apps.
Industry sources for AllThingsD say that of the $7.5 billion Apple made from the iTunes Store during FY2012, over $2 billion of that came from gift cards. Third-party retailers allegedly keep about 13 percent of the value of each card sold, which translates into a market of about $260 million. Facebook's entry into the market could potentially be disruptive, since it creates another easier alternative to physical cards.