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Media Streaming Challenges App Store Downloads for Leading Share of iTunes Store Traffic
Networking company Sandvine has released a new report that breaks down North American iTunes traffic on fixed networks, examining how iTunes customers are using the service. Surprisingly, the largest portion of iTunes traffic is not generated from streaming, but from the App Store.
Direct App Store downloads account for 38.1% of total iTunes traffic, while 36.15% of traffic comes from iTunes streaming, which includes movie and song previews, along with iTunes Match.
With iTunes Match, customers can stream music and video purchases to both mobile devices and Apple TVs. Apple's streaming traffic may increase in the coming months with the introduction of iRadio, the company's rumored streaming radio service.
Media downloads, which are non application purchases such as music, movies, and books make up the third largest portion of iTunes traffic at 20.47% and the final 5.33% of traffic is generated from iTunes Browsing as users visit various App Store and iTunes pages.
As Tim Cook noted in Apple's Q2 financial results call, iTunes has been experiencing phenomenal growth with record quarterly billings of $4 billion. Apple's App Store is nearing 50 billion downloads and has paid out more than $9 billion to developers.
Sandvine's report also points out that Apple manufactured devices generate 35% of all streaming audio and video on fixed access networks, with the iPad generating the most traffic at 10%.
To generate its report, Sandvine examined a cross-section of customer data, gathered over a one-month period and compiled a 24-hour profile of each network normalized by the number of active subscribers at each hour of the day.
Direct App Store downloads account for 38.1% of total iTunes traffic, while 36.15% of traffic comes from iTunes streaming, which includes movie and song previews, along with iTunes Match.
With iTunes Match, customers can stream music and video purchases to both mobile devices and Apple TVs. Apple's streaming traffic may increase in the coming months with the introduction of iRadio, the company's rumored streaming radio service.
Media downloads, which are non application purchases such as music, movies, and books make up the third largest portion of iTunes traffic at 20.47% and the final 5.33% of traffic is generated from iTunes Browsing as users visit various App Store and iTunes pages.
As Tim Cook noted in Apple's Q2 financial results call, iTunes has been experiencing phenomenal growth with record quarterly billings of $4 billion. Apple's App Store is nearing 50 billion downloads and has paid out more than $9 billion to developers.
Sandvine's report also points out that Apple manufactured devices generate 35% of all streaming audio and video on fixed access networks, with the iPad generating the most traffic at 10%.
To generate its report, Sandvine examined a cross-section of customer data, gathered over a one-month period and compiled a 24-hour profile of each network normalized by the number of active subscribers at each hour of the day.
[ 26 comments ]
Top Rated Comments
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88 months ago
Doomed. Why do they keep trying? /s
Do you guys seriously still think you're funny with the sarcastic "doomed" crap? It's been done in almost every thread for months.
88 months ago
between netflix, youtube, spotify and cable channels streaming their content there is no reason to buy anything on itunes except for apps
but i do rent a few movies a month
Sounds great, until you're on a plane, or out on the water in a boat, or camping or biking deep in the woods. You know, places where there isn't a constant internet connection. Maybe I'm old fashioned, but I like MY music, and if I like a new song, I buy it. Then I can listen to it forever. I added up all my music purchases from iTunes over a year and it was less that a year's subscription to Spotify. Each year my collection grows and one day, when I'm officially too old to like ANYTHING new, I can pay nothing and listen to the songs I like while out on a lake in the middle of nowhere.
88 months ago
Do you guys seriously still think you're funny with the sarcastic "doomed" crap? It's been done in almost every thread for months.
Thank you. It's became annoying always seeing that in the first few comments on most threads.
88 months ago
Google's new music streaming service being introduced tomorrow is a streaming service. Where's iRadio?
Kind of like BBM, late to the party.
They're different things. iRadio is something like Pandora. Probably will be nothing new, but it'll work with iTunes and iPhone, so I'll be happy.
88 months ago
Do you guys seriously still think you're funny with the sarcastic "doomed" crap? It's been done in almost every thread for months.
I think you'll keep seeing it until Apple makes Safari a bit more snappier
88 months ago
I buy the majority of my music on iTunes now. Very rarely will I buy a CD. But I still buy DVDs or Blu-ray's over downloading my movies. I still prefer it that way. Until they stop making them I'll still buy them.
Yeh, I bought Venture Bros on itunes. It cost just as much as the dvd set, and didn't come with any of the special features. Last time I do that.
88 months ago
I hope any iRadio (or whatever it'll be called) comes with a hefty chunk of extra bandwidth and/or server performance, because iTunes Match is already pretty flakey on a regular basis.
They should increase the upper song limit for Match while they're at it, seeing as rivals offer far more.
I think you're hinting at what I think Apple iDevice innovation is all about now: data burn... faster and faster. Siri, Maps, iMessage, Match, Photostream, iCloud and possibly this iRadio... all dependent on burning data against which we have hard caps with almost every major carrier.
Do we not see what's going on here? Apple likes the iPhone subsidy. The carriers whine about having to pay Apple so much. So Apple starts innovating "must have" iDevice features that burn data faster and faster. Use them and you get to your tier limits more quickly, which then yields more revenue for the wireless data tollmasters.
At first I couldn't make sense of iRadio as a "next big thing". Pandora, Spotify, etc already exist and work great. I'm sure Apple can bring a few new things to that table. But radio? It seems so yesterday.
Then, I saw several articles around each carrier releasing their earnings in which they loved the revenue & subscriber growth that came with iPhone but hate the fatter subsidy they pay Apple for iPhone. That subsidy is a big part of Apple revenues roaring (they basically have corporations paying for most of the cost of iPhones so that the masses can be financially enticed (as well) to go iPhone). So how can Apple make their partners happy? Help them make more money from us. How to do that? Give us new software toys that bang us into data tiers faster and faster.
Win for Apple. Win for AT&T, Verizon, etc. We just pay more and even gush our excitement at anything coming with even more data-burn fundamentals.
If you want to anticipate the biggest new software features of iOS 7 & 8, think about what else could be built by Apple that will stream lots of data. Some other video streaming service (aka various forms of an Apple Television rumor) would be a very hungry data hog. What else could Apple internalize or "invent" that would really burn that 4G/3G data?
88 months ago
You mean those 1-2GB apps I have to constantly download to update is generating more traffic than that one time I actually bought an episode from iTunes? shocking!
88 months ago
between netflix, youtube, spotify and cable channels streaming their content there is no reason to buy anything on itunes except for apps
but i do rent a few movies a month
but i do rent a few movies a month
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