Apple’s iTunes Stands Amongst the Largest Media Companies in the World

By: Ali Raza  |   December 10th, 2012   |   Apple, Business, Gadgets, iOS, News, Social Media

To the common observer, it appears as though media corporations like Yahoo!, Google, Facebook and others represent the most noteworthy media business online. However, on close examination, it comes to light that California based Apple Inc., known more for their iconic mobile devices is leading these aforementioned companies with some very impressive numbers when it comes to the business of media.

 

This is made possible thanks in large part to iTunes and the App store, which offer almost everything to iOS users ranging from movies to music, books to newspaper subscription and much more.

 

In fact, Apple makes more money from its App store and iTunes than famous daily newspaper the New York Times, Warner Bros who happen to own the famous Batman movie franchise, Simon & Schuster, who published the best selling “biography” of late Steve Jobs and Time Inc. the largest magazine publisher in the United States. In fact, Apple makes more than all of these well known companies combined.

 

According to the Apple’s latest fiscal report, the iPhone maker has successfully generated proceeds of $8.5 billion from its media business, whereas the combined profit of all the above mentioned “media giants” during the same period was just $8.2 billion, meaning they would still need to make more than $300 million to outdo the Cupertino giant.

 

The best part about iTunes is that Apple generates revenue from its 435 million accounts and not from the sale of apps and music. Because the annual growth rate of iTunes is 35 percent, a remarkable rate, it allows Apple to ask for stipulation from the media companies thereby putting it in the position of power.

 

Moreover, this exceptional growth indicates that iTunes is escalating faster than the bigger media giants like Walt Disney with $42.28 billion profit during the fiscal year and New Corp. with 33.88 billion earnings in the same phase.

 

If iTunes kept on growing with the same rate observers believe that it will beat other industry giants, including Viacom Inc. in terms of revenue till 2014 ($14.9 billion in 2011).

 

Source: Bloomberg, Tuaw