Wednesday, December 5, 2012

The iTunes business is more powerful than the big media companies

itunes store nube El negocio de iTunes es más potente que el de grandes empresas de medios

Since a few years ago, Apple decided to go for the digital distribution of content. Apple was one of the first companies to bet on this distribution. At first many people were skeptical, especially those related to distribution companies in hardware. They said that people paid for something physical and digital distribution would not triumph.

Today, there are those who maintain this discourse, but it seems pretty clear that this is not true and that Apple really has a capacity unrivaled distribution and can now consider digital distribution chain Apple as one of the most powerful world, ahead of movie studios, publishers and newspapers. Thanks in part to the great success that have led devices like tablet of the company without forgetting their smartphone , the different ranges of iPod and Mac computers course

iTunes Store, a big business for Apple

To give some examples, book stores, apps, music and movies from Apple generate more money year after companies such as Warner Bros, Simon & Schuster (one of the largest publishers in the world) and Time Inc. (publisher of largest U.S. magazines).

All these companies have had revenues of about 8,200 million during the last year. Meanwhile Apple has obtained about 8,500 million dollars, or 300 million more than its competitors combined and over without spending a single dollar on content creation because Apple only distributed.

Of course Apple has the infrastructure cost in research, development and maintenance, but it is certainly much lower than content creation and the company will report enormous profits each year.

itunes El negocio de iTunes es más potente que el de grandes empresas de medios

In each content sold through the iTunes Store, App Store, Mac App Store or iBook Store, Apple keeps 30% of what the customer pays for costs of distribution (40% in the case of applications) , plus 25 cents that are for credit card companies. Although for many the highlight of the Apple stores are the songs, the company is making big profits from the sale of films, television series, books and magazine subscriptions (in the latter case, subscriptions are automatically renewed from time to time ).

To give some examples clearer, every time Apple sells a copy of The Avengers (16.99 euros in HD), Apple gets about 5 euros for commission and when the company sells an eBook copy of the official biography of Steve Jobs written by Walter Isaacson takes about 3 euros. Amounts are "small", but the sales volume is tremendous, so Apple gets an income so large and this branch of his business is more powerful than many companies in the market.

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There is little content companies that generate a bigger business than Apple's digital distribution. Only some business groups like News Corp (Fox, Fox News, SKY, etc.), Viacom (Nickelodeon, MTV, Paramount) or Disney (ESPN, ABC, Lucasfilm, etc.) Are able to overshadow Apple and distribution overcome their turnover, although growth of Apple in this field is very fast and if things go well could exceed these groups will be available shortly.

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