Media Streaming Challenges App Store Downloads for Leading Share of iTunes Store Traffic

Discussion in ' News Discussion' started by MacRumors, May 14, 2013.

  1. macrumors bot


    Apr 12, 2001

    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
  2. macrumors 6502a


    Jul 15, 2011
  3. macrumors 68020


    Feb 28, 2009
    Bloody Sandvine.

    Ask yourself - how exactly did they get this data? (Hint, it's in the linked article).
  4. macrumors 68000


    Jul 10, 2012
    Do you guys seriously still think you're funny with the sarcastic "doomed" crap? It's been done in almost every thread for months.
  5. macrumors 6502

    Feb 27, 2013
  6. macrumors 603

    Jun 19, 2009
    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
  7. macrumors 6502


    Oct 23, 2010
    Gahanna, OH
    Thank you. It's became annoying always seeing that in the first few comments on most threads.
  8. macrumors 68020

    Sep 12, 2009
    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.
  9. macrumors regular

    Feb 5, 2013
    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.
  10. macrumors 6502a


    Jun 21, 2011
    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.
  11. macrumors regular

    Mar 21, 2013
    I think you'll keep seeing it until Apple makes Safari a bit more snappier
  12. macrumors 6502

    Apr 26, 2011
    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!
  13. macrumors 68000


    Mar 28, 2005
    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.
  14. macrumors 65816

    May 28, 2008
    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.
  15. HobeSoundDarryl, May 14, 2013
    Last edited: May 14, 2013

    macrumors 601


    Feb 8, 2004
    Hobe Sound, FL (20 miles north of Palm Beach)
    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?
  16. macrumors 6502

    Feb 27, 2013
  17. macrumors 65816


    Mar 24, 2004
    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.
  18. macrumors 6502

    Feb 27, 2013
    Google's new music streaming service being introduced tomorrow is a streaming service. Where's iRadio?

    Kind of like BBM, late to the party.
  19. macrumors 68030


    Sep 3, 2010
    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.
  20. macrumors 65816


    Apr 15, 2012
    So this would exclude the possibility of Apple offering a streaming music service?
  21. macrumors 6502

    Feb 27, 2013
    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...
  22. macrumors 65816

    Aug 16, 2007
    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.
  23. macrumors 68000


    Dec 31, 2007
    Colorado & Ontario
    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.
  24. macrumors 6502a

    Mar 17, 2009
  25. macrumors regular

    May 14, 2013
    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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