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Tech Talk Radio Show 25 of 2011
Transmission date: June 20, 2010
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Ep 25 of 2011
June 20

If you ever needed any convincing that apps stores are here to stay, then would it surprise you that the iTunes store continues to grow. In fact iTunes now costs $1.3 billion a year to run. Apple recently published iTunes store figures that were amazing to say the least.


These included 15 Billion iTunes song downloads , 130 million book downloads, 14 billion app downloads, $2.5 billion paid to developers, 225 million accounts, 425k apps, 90k iPad apps, 100k game and entertainment titles
50 million game center accounts.

Since we know something about the average price of songs and apps, and we know the split between developers and Apple (and roughly between music labels and Apple) we can get a rough estimate of the amount Apple retains to run its store.

If we add the content margins from music and apps and assume the store runs at break even we can get an idea of what it costs to operate the store.  The latest number is $113 million per month from a total income of $313 million per month which implies over $1.3 billion per year. But back to the stats…

With 225 million account users, Apple’s online database is larger than Sony’s, and we all know what happened to Sony in the last month or so. Apple also stores credit card information with user information, so the question needs to be asked, “How secure is Apple’s online data?”

Sony, despite being a large company, is small in comparison to Apple, and most Apple users would lodge some type of credit details with the iTunes store. But where the main purpose of Apples store is to sell apps, music and movies, Sony’s Playstation network was more a conduit to playing with friends online, than buying content, so in theory, Apple would fall further than Sony if it were to meet the same fate.

So if putting this into perspective makes you nervous, then why not remove your credit card from the iTunes database, and buy iTunes gift cards at your local supermarket. You never know, it may be the best gift you ever give yourself.

This week on Tech Talk Radio

Apples iTunes continues to grow, in fact Apple could buy the whole mobile phone industry if it so desired. Tasmanian public schools locked out of NBN, Hackers hit US Senate, the Feds quietly close mandatory internet filtering branch, and Google suspends more Android apps.

This week's App of the Week:


Android: Foodspotting Lite

Foodspotting is a visual guide to good food and where to find it. Instead of reviewing restaurants, you can find and share where to find your favorite dishes using photos.

This is a Lite version that includes the basic features of foodspotting.

Android Only.

Looking for pevious Apps of the Week?