- Sometime in February 2012 Apple will report 25 billion total apps downloaded.
- Apple reported nearly $7 billion in iTunes stores revenue (the apps were only counted for the 30% agency fee) during 2011.
- If gross revenues were measured, the iTunes economy was about $10 billion in 2011.
- Payments to content publishers were in the vicinity of $7 billion of which $2.1bn was paid to developers.
- Since iOS devices started shipping, there have been over 335 million units sold. As 25 billion apps have been downloaded into them then about 75 apps were downloaded for each unit sold. Since we know the average price (23c) and the payout ratio (70%) then all this boils down to the fact that each iOS device generates $17 of iTunes income from Apps alone.
Monday, February 20, 2012
Apple Appstore stats
Asymco reported some interesting stats in regard to Apple's Appstore. According to company's CEO, Tim Cook, Apple paid in 4Q2011 some $700 million quarterly payout to Apps developers. The total payment to date stand at $4 billion. Remember that Apple retails 30% of Apps sales and reports the rest 70% back to developers. The story has some other interesting data points of iTunes ecosystem.
Sunday, February 19, 2012
Interest-Based Social Networks
I read from TechCrunch intriguing article concerning interest based social networks. With the pending IPO of Facebook one might say “social is done,” Facebook is all the social media anyone would ever want or need. With its one billion accounts, "in the solar system of social media, Facebook is the Sun — the gravitational center around which everything social revolves". However users clearly haven’t gotten the memo. Instead, users are rapidly adopting new interest-based social networks such as Pinterest, Instagram, Thumb, and Foodspotting. The article states: "What accounts for the fast growth of these interest-based social networks, and what does it mean for Facebook’s future?
Interest-based social networks have a markedly different focus and approach than Facebook. The Pinterest, Thumb and Foodspottings of the world enable users to focus and organize around their interests first, whereas Facebook focuses on a user’s personal relationships. Facebook offers us a social utility to deepen social connectivity with our existing social graphs, while these new interest-based social networks enable users to express their interests in new, engaging ways and offer authentic, high value connectivity with new people we don’t already know."
Furthermore, "There are opportunities to establish differentiated, sustainable social media brands with large, passionate audiences. Much like the modern day media disrupters (e.g. ESPN or HBO or CNN), these services can establish new social media networks that are differentiated and unique, protecting them from the inevitable concern that they get squashed by Facebook. The traditional “Big 3 networks” (NBC, ABC, and CBS) used to be the only properties that really mattered, similar to how some view Facebook, Twitter and LinkedIn in today’s social media landscape. Emerging networks will be the new media brands and properties that augment social networking and media."
Interest-based social networks have a markedly different focus and approach than Facebook. The Pinterest, Thumb and Foodspottings of the world enable users to focus and organize around their interests first, whereas Facebook focuses on a user’s personal relationships. Facebook offers us a social utility to deepen social connectivity with our existing social graphs, while these new interest-based social networks enable users to express their interests in new, engaging ways and offer authentic, high value connectivity with new people we don’t already know."
Furthermore, "There are opportunities to establish differentiated, sustainable social media brands with large, passionate audiences. Much like the modern day media disrupters (e.g. ESPN or HBO or CNN), these services can establish new social media networks that are differentiated and unique, protecting them from the inevitable concern that they get squashed by Facebook. The traditional “Big 3 networks” (NBC, ABC, and CBS) used to be the only properties that really mattered, similar to how some view Facebook, Twitter and LinkedIn in today’s social media landscape. Emerging networks will be the new media brands and properties that augment social networking and media."
Friday, February 3, 2012
Facebook's IPO valuation
If you don't follow Bill Gurley's blog, this analysis of Facebook's valuation between $70-$100 billion is just a one example how he thinks.
Chez Benchmark Capital where he works they have created the following framework:
"We also created a list of 10 factors that public investors consider when trying to qualify if a company is deserved of such a prestigious and lofty valuation.
On a roll, these factors are:
1. Sustainable Competitive Advantage – how big is the competitive Moat?
2. Presence of Network Effects – does the model tip to a single vendor?
3. Visibility/Predictability – is the revenue consistent
4. Customer Lock-in / High Switching Costs – is it expensive to leave?
5. Gross margin levels – How much leverage exists is the business?
6. Marginal Profitability Calculation – is the leverage still expanding?
7. Customer Concentration – are there key dependencies?
8. Major Partner Dependencies – are there key dependencies here as well?
9. Organic Demand vs. Marketing Spend – is customer acquisition expensive?
10. Growth – how big will the future be? "
Conclusion: "The bottom line is that the banker range looks right to me. Of course, overt and ecstatic demand for the hottest IPO of the past 10 years could easily lead to much higher speculative valuations. But it’s hard to argue that the $70-100B range is wrong. Feels quite right to me."
Chez Benchmark Capital where he works they have created the following framework:
"We also created a list of 10 factors that public investors consider when trying to qualify if a company is deserved of such a prestigious and lofty valuation.
On a roll, these factors are:
1. Sustainable Competitive Advantage – how big is the competitive Moat?
2. Presence of Network Effects – does the model tip to a single vendor?
3. Visibility/Predictability – is the revenue consistent
4. Customer Lock-in / High Switching Costs – is it expensive to leave?
5. Gross margin levels – How much leverage exists is the business?
6. Marginal Profitability Calculation – is the leverage still expanding?
7. Customer Concentration – are there key dependencies?
8. Major Partner Dependencies – are there key dependencies here as well?
9. Organic Demand vs. Marketing Spend – is customer acquisition expensive?
10. Growth – how big will the future be? "
Conclusion: "The bottom line is that the banker range looks right to me. Of course, overt and ecstatic demand for the hottest IPO of the past 10 years could easily lead to much higher speculative valuations. But it’s hard to argue that the $70-100B range is wrong. Feels quite right to me."
Thursday, February 2, 2012
Infographic: Hollywood's long war on technology
Boingboing has a great infographic illustrating Hollywood's hostility towards technology over the years - and how eventually all content owners have benefited from technology adoption.
Wednesday, February 1, 2012
Digital marketing trends, tips, info
One of the most useful site to follow digital marketing space is iMedia Connection. The site can look a tad confusing so I suggest to subscribe to their daily newsletter.
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