Who said music is in a slump? Somebody is copping billions of tunes
via Washington Post
Apple announced today that it has sold a total of about 5 billion songs, up from the 4 billion mark it announced in Jan this year. The more interesting bit is that it is now renting and purchasing over 50,000 movies every day, the company says. Apple has recently done deals with all of the major movie studios after a few years of trying to convince others besides Disney to come onto the service. At this rate, it will have sold or rented about 18.25 million movies on an annualized basis.
Cynthia Brumfield does some basic calculations on the possible annual revenues for Apple: “iTunes movie sales are priced at $9.99 (for library titles) and $14.99 (for new releases). Rentals are priced at $2.99 (library) to $3.99 (new releases), with Apple TV HD versions of film rentals priced at $1 above the standard rental prices. Assuming that the average price of a sale/rental combined is around $6, then Apple is raking in around $110 million in movie revenue alone on an annual basis.” While that isn’t necessarily a huge amount, that is the amount that didn’t exist before. It is also big in the online/digital video world.