The iTunes value conundrum

Apple recently announced that iTunes has 575 million accounts. However, each of the current accounts generates about half the revenue of the 100 million accounts of 2009. So what's driving the decline?

This week Apple announced that iTunes has 575 million accounts. This is the 8th update (that I know of) over the last four years. The history of this data is shown in the following graph.

Graph for The iTunes value conundrum

The number of accounts has increased by almost a factor of six since late 2009. It amounts to an account growth rate of about 500,000/day or 44 per cent compounded annually. Not bad, but along with this increase what happened to revenues per user?


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