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Old May 14, 2013, 01:57 PM   #1
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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.

Article Link: Media Streaming Challenges App Store Downloads for Leading Share of iTunes Store Traffic
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Old May 14, 2013, 02:04 PM   #2
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Doomed. Why do they keep trying? /s
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Old May 14, 2013, 02:08 PM   #3
smithrh
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Bloody Sandvine.

Ask yourself - how exactly did they get this data? (Hint, it's in the linked article).
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Old May 14, 2013, 02:35 PM   #4
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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.
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Old May 14, 2013, 02:35 PM   #5
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Originally Posted by smithrh View Post
Bloody Sandvine.

Ask yourself - how exactly did they get this data? (Hint, it's in the linked article).

I think that this chart from the same report gives a little clearer picture of video streaming market from home.

http://appleinsider.com/articles/13/...itunes-takes-2

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Old May 14, 2013, 02:47 PM   #6
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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
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Old May 14, 2013, 02:54 PM   #7
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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.
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Old May 14, 2013, 03:06 PM   #8
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How is it surprising that apps have the largest portion of iTunes traffic? They are selling tens, if not hundreds, of millions of iOS devices each year.

At the same time, streaming services like Netflix and Spotify become more popular because it offers you the same content - based on streaming - as iTunes, for a much lower price.
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Old May 14, 2013, 03:06 PM   #9
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If itunes added a streaming service that would be killer. Netflix is great but my only gripe is that the selection isn't great (for the shows i like) and you cant watch the latest episodes.
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Old May 14, 2013, 03:19 PM   #10
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Originally Posted by alent1234 View Post
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.
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Old May 14, 2013, 03:26 PM   #11
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Originally Posted by xmichaelp View Post
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
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Old May 14, 2013, 03:49 PM   #12
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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!
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Old May 14, 2013, 04:29 PM   #13
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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.
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Old May 14, 2013, 05:06 PM   #14
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Originally Posted by alent1234 View Post
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
Dittto.but I don't rent streaming movies at all.Between Netflix streaming+discs,Amazon prime(I already had prime so it's FREEEE!),If I can't find something to watch I must not really want to watch TV.Plus I've just started exploring Crackle,so that's plenty of options.Aereo Is coming to town soon,and that will be the last of my cable bill.
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Old May 14, 2013, 05:19 PM   #15
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Originally Posted by Porco View Post
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?

Last edited by HobeSoundDarryl; May 14, 2013 at 05:26 PM.
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Old May 14, 2013, 05:41 PM   #16
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Google reportedly signs deal with Sony and Universal ahead of launching music streami

Looks like Google already is going to beat Apple to the streaming music arena.

Tomorrow's Google i/o keynote should be an interesting one.

Verge:
"Exclusive: Google readies its Spotify competitor with Universal and Sony now on board"

http://www.theverge.com/2013/5/14/43...ify-competitor

Wonder if this is why Apple stock tanked today and after hours?
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Old May 14, 2013, 05:45 PM   #17
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Originally Posted by 4TheLoveOfTech View Post
I think that this chart from the same report gives a little clearer picture of video streaming market from home.

http://appleinsider.com/articles/13/...itunes-takes-2

Image
Interesting, but completely Apples and Oranges chart. Netflix is a paid streaming service without any new highly demanded media. Youtube is paid by advertisers. iTunes is a rent or buy per movie or show and so on and so on.
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Old May 14, 2013, 05:51 PM   #18
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Interesting, but completely Apples and Oranges chart. Netflix is a paid streaming service without any new highly demanded media. Youtube is paid by advertisers. iTunes is a rent or buy per movie or show and so on and so on.
Google's new music streaming service being introduced tomorrow is a streaming service. Where's iRadio?

Kind of like BBM, late to the party.
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Old May 14, 2013, 05:54 PM   #19
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Originally Posted by alent1234 View Post
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
so you basically do have a reason to buy things on itunes besides apps. nice post, dude.

like you, i rent a few movies a month on itunes. perhaps more, since i dont have cable or use hulu. i also enjoy buying music since i dont use spotify and prefer to own my music.
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Old May 14, 2013, 06:03 PM   #20
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Originally Posted by 4TheLoveOfTech View Post
Looks like Google already is going to beat Apple to the streaming music arena.

Tomorrow's Google i/o keynote should be an interesting one.

Verge:
"Exclusive: Google readies its Spotify competitor with Universal and Sony now on board"

http://www.theverge.com/2013/5/14/43...ify-competitor

Wonder if this is why Apple stock tanked today and after hours?
So this would exclude the possibility of Apple offering a streaming music service?
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Old May 14, 2013, 06:06 PM   #21
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So this would exclude the possibility of Apple offering a streaming music service?
Not at all, but it sure does take the wind out of Apple's sails when they are late to the party.

My guess is Google will release it on iOS as well. Won't know until tomorrow though...
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Old May 14, 2013, 06:24 PM   #22
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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.
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Old May 14, 2013, 06:39 PM   #23
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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.
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Old May 14, 2013, 11:22 PM   #24
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I love the standard MS Excel chart...
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Old May 14, 2013, 11:40 PM   #25
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Originally Posted by 4TheLoveOfTech View Post
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.
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