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MacRumors
Jun 14, 2013, 08:17 AM
http://images.macrumors.com/im/macrumorsthreadlogo.gif (http://www.macrumors.com/2013/06/14/apple-adding-roughly-500000-new-itunes-accounts-a-day/)


http://images.macrumors.com/article-new/2013/06/itunes_store_account_growth_jun13.jpgDuring Apple's Worldwide Developer Conference keynote, CEO Tim Cook announced (http://www.macrumors.com/2013/06/10/app-store-developer-payout-over-10-billion-apple-stores-seeing-1-million-visitors-daily/) that the iTunes and App Store have 575 million store accounts and noted that Apple believes it has more accounts with credit cards than any other company on the Internet.

Asymco's Horace Dediu yesterday used the new figure to take a look (http://www.asymco.com/2013/06/14/whats-an-apple-user-worth/)*at the value of an Apple user to the company. By plotting Apple's previous milestones all the way back to 2009, Dediu found that Apple is adding about 500,000 new iTunes accounts a day and that the company is on pace to add another 100 million accounts by the end of the year.

Dediu also found that iTunes revenue per account is approximately $40 per year, about half the amount seen in 2009.One would expect such a decline as an user base expands and this approximate 50% decline in revenues per account seems reasonable for a six-fold base increase. In absolute terms the graph shows that an iTunes account generates about $3.2/month in transactions. Put another way, during the last year, an average of $40/yr of economic value is generated by every iTunes account.The report goes on to extend the analysis to company-wide revenue and enterprise value per account holder as proxies for determine how much a single customer is worth to the company and how much that customer is valued by stockholders.

In early June, Morgan Stanley analyst Katy Huberty noted (http://www.macrumors.com/2013/06/04/apples-500-million-itunes-store-accounts-offer-significant-potential-for-growth-in-services/) that Apple's large number of iTunes/App Store accounts offer significant potential for growth in services. And at his D11 interview (http://www.macrumors.com/2013/05/28/live-tim-cooks-interview-at-d11-conference/), Cook touted iMessage, iTunes Store and FaceTime as examples of how Apple's services are tying together Apple's ecosystem, with Cook emphasizing that the "magic" happens at the interaction of hardware, software, and services.

Article Link: Apple Adding Roughly 500,000 New iTunes Accounts A Day (http://www.macrumors.com/2013/06/14/apple-adding-roughly-500000-new-itunes-accounts-a-day/)



markieg
Jun 14, 2013, 08:25 AM
Doesn't reflect the number of users,

Still unable to merge/migrate iTunes accounts

troop231
Jun 14, 2013, 08:27 AM
I bet a Russian would love to have 500,000 new 'accounts' per day :p

Jack97
Jun 14, 2013, 08:33 AM
woah. :eek:

firedept
Jun 14, 2013, 08:38 AM
I have 3 accounts, all of which I would like to merge. So I personally believe Apple's numbers are skewed. Do not get me wrong, Apple still has lots of accounts. Also wonder how many are dormant. As for their claim to the most credit cards, I find this hard to believe. Paypal has been around far longer than iTunes. But I could be wrong.

CooKieMoNs7eR
Jun 14, 2013, 08:44 AM
That's insane 😱

dejo
Jun 14, 2013, 08:46 AM
As for their claim to the most credit cards, I find this hard to believe. Paypal has been around far longer than iTunes. But I could be wrong.

I don't believe a Paypal account requires a credit card attached.

firedept
Jun 14, 2013, 08:57 AM
I don't believe a Paypal account requires a credit card attached.

Actually meant Ebay. If you are a seller on Ebay, you are required. I would think Ebay has many sellers? Also said I could be wrong.

dejo
Jun 14, 2013, 09:03 AM
Actually meant Ebay. If you are a seller on Ebay, you are required. I would think Ebay has many sellers?
I signed up for eBay many years ago and didn't need to attach a credit card, so this may be a new policy. And I would be surprised if eBay had that many sellers. But (now it's my turn) I could be wrong.

Also said I could be wrong.
Yeah, sorry if my comment came across as an attack. It was not intended that way. My apologies.

roadbloc
Jun 14, 2013, 09:03 AM
I wonder how many of these accounts have a form of payment attached to them. 40% maybe?

inlinevolvo
Jun 14, 2013, 09:09 AM
I wonder how long before we see "pay with iTunes" on the checkout page of online retailers. I already enjoy the convenience of using PayPal outside of eBay. Saves me from creating accounts at each retailer, which I end up forgetting about anyway.

firedept
Jun 14, 2013, 09:15 AM
I signed up for eBay many years ago and didn't need to attach a credit card, so this may be a new policy. And I would be surprised if eBay had that many sellers. But (now it's my turn) I could be wrong.


Yeah, sorry if my comment came across as an attack. It was not intended that way. My apologies.

I am sure someone will correct me if wrong. No offense was ever taken.

I started as a seller here in Canada in 2000 on Ebay and it was required by them. Still is today. I do realize Ebay in every country has different rules though.

dejo
Jun 14, 2013, 09:19 AM
I started as a seller here in Canada in 2000 on Ebay and it was required by them. Still is today. I do realize Ebay in every country has different rules though.

Damn Canadians, always causing trouble! (I'm originally from Alberta. :D )

.Asa
Jun 14, 2013, 09:19 AM
I spend a lot more than $40/yr on iTunes ;)

unplugme71
Jun 14, 2013, 11:17 AM
I myself have about 6 itunes accounts. Mostly because I started with an AOL account, then went to hotmail, then gmail, then mac, then mobileme, and now icloud. None of them have a credit card attached.

I settled on using just the mobileme account and have been purchasing on this one only. I wish Apple could merge everything, but with iTunes Match I was able to move all my music into 1 account.

----------

I spend a lot more than $40/yr on iTunes ;)

I probably spend that monthly. Heck one month I probably spent $400 between iTunes and Mac App store. That was when I was buying iLife and iWork for both iOS and Mac, along with some movies and tv series.

firedept
Jun 14, 2013, 01:03 PM
Damn Canadians, always causing trouble! (I'm originally from Alberta. :D )

I'm originally from Pennsylvania. Now transplanted in Alberta.

sazivad
Jun 14, 2013, 04:08 PM
Doesn't reflect the number of users, [because users are] still unable to merge/migrate iTunes accounts.
How many of those 500,000 accounts do you really think are just duplicate accounts, or whatever?

szw-mapple fan
Jun 14, 2013, 04:59 PM
Paypal has been around far longer than iTunes. But I could be wrong.

Have you considered the sheer number of people using Apple products?

donutbagel
Jun 14, 2013, 05:39 PM
Doesn't reflect the number of users,

Still unable to merge/migrate iTunes accounts

I think I have 5 accounts, but I don't know how many people do that.

phoenixsan
Jun 14, 2013, 05:51 PM
a cash cow....But still, how many iTunes accounts are created for another purposes, like only seeing videos or access to the App and Mac Store and no buying nothing....?

Just wondering....:D


:):apple:

firedept
Jun 14, 2013, 06:06 PM
Have you considered the sheer number of people using Apple products?

Yes, but not everyone has a CC linked to iTunes either. I am not arguing that I am right, cause I could be way off on my assessment. I use iTunes all the time but only through iTunes cards and have no CC linked to iTunes.

My argument comes from the fact that Paypal have been around longer than iTunes and it is virtually used by every merchant on the net. If people are using a CC on iTunes it just seems to me that they would be using it through Paypal as well.

Tim Cook never actually gave a physical number so it is hard for any of us to really know for sure. And I think any company that would announce a physical number would be crazy. That's like telling a thief how many gold bars are in the safe. I think I make a valid point, but I have no problem being wrong about this either.

jmbarry
Jun 14, 2013, 10:44 PM
If you read the full report, you will see that the lifetime value of an Apple user has dropped much faster than their purchases per iTunes account. In other words Apple users should be abandoning Apple rapidly. All the Apple hate sure has people thinking that Apple is horrible, but those who use it love it! Lots of upside for Apple the stock and Apple the company, despite all the negative, and its all proven by the numbers.

a0me
Jun 15, 2013, 12:10 AM
I have 3 accounts, all of which I would like to merge. So I personally believe Apple's numbers are skewed.
I also have 3 accounts, each for a separate iTunes Store. Some content (apps, songs, iBooks, ...) are only available in specific countries, and if we were able to "merge" we'd likely lose the ability to access each separate stores.

jaknudsen
Jun 15, 2013, 03:03 AM
I don't believe a Paypal account requires a credit card attached.
Neither does an iTunes account, of course.

Nightarchaon
Jun 15, 2013, 07:08 AM
i Didn't realise that many credit cards were stolen globally every day. :eek:

alent1234
Jun 15, 2013, 10:42 AM
If you read the full report, you will see that the lifetime value of an Apple user has dropped much faster than their purchases per iTunes account. In other words Apple users should be abandoning Apple rapidly. All the Apple hate sure has people thinking that Apple is horrible, but those who use it love it! Lots of upside for Apple the stock and Apple the company, despite all the negative, and its all proven by the numbers.



Most of the recent users don't plan on buying anything. Like my mom, her friends and my mother in law

Lots of free apps

umerakawaru
Jun 15, 2013, 12:12 PM
Perhaps the $40.00 purchase average per month has to do with Apple's DRM limitations. I purchased a VGA adapter for my iPod Touch. I can watch Netflix but I cannot watch my SD or HD iTunes movies. I was infuriated during a movie night with my friends. The movie I had purchased showed up on the screen then goes blank with the message on my iPod "The connected display is not authorized to play protected movies". That's when I decided never to purchase movies on iTunes if its available elsewhere, like on Google Play. I gladly spend my money elsewhere. I LOVE Mac OS X for work ( music production) but I'm getting the hell out of Apple's mobile ecosystem. Blackberry 10 looks good and responsive. Disclaimer: The makers of the OS, QNX, are headquartered in my city... ;)

paul4339
Jun 15, 2013, 06:08 PM
Actually meant Ebay. If you are a seller on Ebay, you are required. I would think Ebay has many sellers? Also said I could be wrong.

According eBay (January 16th, 2013) the company has 112.3 million active users.

.

beaniemyman
Jun 16, 2013, 03:13 PM
that's huge! apple really knows how to play the game. congrats apple!, you deserved this success

JoEw
Jun 16, 2013, 03:20 PM
Perhaps the $40.00 purchase average per month has to do with Apple's DRM limitations. I purchased a VGA adapter for my iPod Touch. I can watch Netflix but I cannot watch my SD or HD iTunes movies. I was infuriated during a movie night with my friends. The movie I had purchased showed up on the screen then goes blank with the message on my iPod "The connected display is not authorized to play protected movies". That's when I decided never to purchase movies on iTunes if its available elsewhere, like on Google Play. I gladly spend my money elsewhere. I LOVE Mac OS X for work ( music production) but I'm getting the hell out of Apple's mobile ecosystem. Blackberry 10 looks good and responsive. Disclaimer: The makers of the OS, QNX, are headquartered in my city... ;)

Well this is more at fault with the movie studios than apple. I mean they are the ones who want the limitations Apple would rather give you as many options as possible so you use their service. The "ecosystem" is not to blame, it is the entertainment industry.

You know what pisses me off? I can rent a movie for 24 hours at Redbox for 1.50 but that same rental on iTunes is 5-6 dollars.. wtf. That my friend is ********.

Of course Apple does not decide pricing, they can try their damn best to negotiate but ultimately a deal has to be signed by the other guys.

MegamanX
Jun 16, 2013, 03:24 PM
Doesn't reflect the number of users,

Still unable to merge/migrate iTunes accounts

to me the fact that they can not merge/migrate iTunes accounts tells me that something is fundamentally wrong with how their databases are set up.

That should not be to hard of an issue to fix.