When Steve Jobs’ announced last week at MacWorld that iTunes has sold “over eight million videos,” the real news behind that announcement is just how fast iTunes video sales are accelerating. First of all, based on that eight million figure, what Jobs was essentially saying is that iTunes had sold an average of nearly 90,000 videos per day, racking up a total in incremental revenue of around $16 million since the iTunes video store was launched on October 12.
More importantly, however, based on video sales announcements made by Apple since the store’s launch, that eight million figure also reveals just how rapidly video sales are increasing at iTunes.
|
Apple iTunes Video Sales |
|||||
|
Date |
# of videos sold |
Incremental Sales |
Total Revenue |
Incremental Number of Days |
Average # of videos sold/day |
|
10/31/2005 |
"more than one million" |
1,000,000 |
$ 1,990,000 |
19 |
52,632 |
|
12/6/2005 |
"more than three million" |
2,000,000 |
$ 3,980,000 |
37 |
54,054 |
|
1/9/2006 |
"more than eight million" |
5,000,000 |
$ 9,950,000 |
33 |
151,515 |
|
Total |
8,000,000 |
$15,920,000 |
89 |
89,888 |
|
| Source: Emerging Media Dynamics analysis of company data. © 2006. | |||||
The nearly 90,000 per day video sales average, however, masks what seems to be rapidly accelerating growth in video sales. On October 31, Apple announced that it had already sold “more than one million” videos in less than 20 days, for a rate of sales run-rate of approximately 52,632 videos per day (taking the one million figure as the most conservative estimate of sales). On December 6th, Apple announced that it had sold “more than three million videos – the additional two million videos (again using two million as a conservative figure), sold over 37 days, yields a rate of 54,054 videos sold per day.
But, by the time of Jobs’ keynote presentation at MacWorld, the number of videos sold soared to “more than eight million,” meaning that in the 33 days between December 6 and January 9 (the day before Jobs’ keynote), Apple sold at least an additional 5,000,000 videos. That incremental gain translates into 151,515 videos sold per day in this time period, a run-rate that is almost triple that of the preceding two time periods.
That’s a lot of videos, and for most of this time period, iTunes’ video offerings were pretty slim — mostly music videos and a handful of high-profile Disney-owned TV shows. As iTunes beefs up its video offerings, it’s clear that video revenues and sales will accelerate even further. (For a more in-depth analysis of iTunes video sales, check out this week’s IP Media Monitor. Free registration required.)
Cynthia Brumfield at 11:50 AM|Comments(0)
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