“Analyst Horace Dediu estimates the average iTunes account generates $12 in music sales,” Glenn Peoples reports for Billboard. “The chart published on Dediu’s blog makes clear music spending has consistently fallen over the last six years. As Apple has added more iTunes accounts, average annual music spend fell from $42 in 2008 to $20 in 2010 to $12.”
“The median annual music spend is probably higher than $12. If one assumes not every iTunes account has purchases music — a reasonable assumption — then some of the 575 million iTunes accounts represent no spending at all. So, accounts that are buying music are spending more than $12 a year. The fact that some family members share accounts means the average spend per person is less than $12 a year,” Peoples reports. “The total spending per iTunes account is $43 per year across all media, says Dediu. At 575 million iTunes accounts, that works out to $24.7 billion of consumer spending at iTunes per year.”
Peoples reports, “Tunes accounts for a large portion all of global spending on digital music. At the $12 per account estimated by Dediu, the 575 million iTunes accounts result in $6.9 billion of annual consumer spending on music. That number is roughly three-fourths of global consumer spending on digital music in 2012.”
Read more in the full article here.
[Attribution: AllThingsD. Thanks to MacDailyNews Reader “Sarah” for the heads up.]