iTunes Store Revenue: If you have been paying attention to our past stories, you know that the Apple Inc. (NASDAQ:AAPL) iTunes Store is breaking its own records in terms of revenue.
Despite the fact that Apple’s store is nearly 10 years old, things just keeping getting better.
As we noted previously, Apple Inc. (NASDAQ:AAPL) reported yesterday that its iTunes Store “broke all records during the second quarter of 2013 with revenue of roughly $4.1 billion.”
As you can see, revenue from this service is growing at an unbelievable pace.
While this is very important to Apple, it is important to note that the rest of the industry is taking note as well.
According to a recent study by the NPD Group, Apple Inc. has a commanding lead “in digital downloads of movies and TV shows.”
Yes, there are competitors. And yes, there are competitors that are putting a lot of time and money in this space. However, nobody has ben able to knock the iTunes Store off its perch. Instead, the company and this service continue to dominate and there is no reason to believe that this will slow down in the near future.
What exactly does this mean? Just how dominant has Apple Inc. (NASDAQ:AAPL) become? The study by the NPD Group shows the following:
“iTunes’ share of electronic sell-through (EST) for television shows reached 67 percent in 2012. EST television sales from Xbox Video, Apple’s nearest competitor, comprised 14 percent of the market. When it comes to feature-length movies, iTunes boasted a 65 percent share of EST, with Amazon and Xbox Video far behind at 10 percent each. Note: EST includes only video content that is purchased by consumers for permanent ownership.”
Take a closer look at those numbers. For television shows, Apple has secured 67 percent of the market. This is astonishing enough, until you look at the fact that the closest competitor, Xbox Video, is way behind with 14 percent of the market.
Russ Crupnick, senior vice president of industry analysis at NPD, talks about how Apple Inc. (NASDAQ:AAPL) was able to take such a big lead:
“Apple has successfully leveraged its first-mover advantage and of iTunes, iOS and the popularity of iPhone and iPad to dominate the digital sale and rental markets for movies and music. While worthy competitors have come along, no other retailer has so thoroughly dominated its core entertainment product categories for so long.”
As Crupnick noted, competitors are out there but none have been able to take Apple down.
See Apple’s dominance in two charts: