charts

iTunes’ Revenue Decline Shows Why Apple Had To Buy Beats (AAPL)

Source: http://www.businessinsider.com/itunes-revenue-decline-shows-why-apple-had-to-buy-beats-2014-5

Apple CEO Tim Cook had an esoteric explanation for why Apple bought Beats, the headphones and music-streaming company. “These guys are really unique,” Cook told the New York Times. “It’s like finding the precise grain of sand on the beach. They’re rare and very hard to find.”

But here’s the grim financial logic that shows why Cook felt he had to pay $3 billion for the company. Revenue from iTunes is in decline, according to this analysis from Morgan Stanley’s Katy Huberty.

Macrumors, which first saw the Morgan Stanley note, says:

Huberty notes that iTunes revenue is falling as users turn to streaming services such as Pandora and Spotify to meet their music needs. This decline “raises concerns about Apple’s ability to monetize the new base of emerging market customers,” writes Huberty. According to Huberty’s calculations, each iTunes account spent an average of $3.29 in the first quarter of this year, down 24% year-over-year.

This chart shows iTunes revenue falling as a percentage of Apple’s online services unit:

Apple Beats

And this one shows iTunes’ revenue per user falling:

Apple Beat

Given those headwinds, it appears that music was actually a battle Apple was losing to challengers like Pandora and Spotify. Beats, presumably, is intended to give Apple a new beachhead in subscription music services that run alongside iTunes Radio’s legacy free streaming service. And ! — another factor for Apple — the headphones themselves give Apple a device platform with its own existing distribution network that it can also improve and build out.

Wednesday, May 28th, 2014 charts No Comments

Source: http://www.businessinsider.com/social-commerce-and-retailer-benefits-2013-8

BII ecommerce conversions size

Overall usage on social media platforms is exploding. Millions and millions of consumers are expressing likes on Facebook, tweeting about products on Twitter, and pinning on Pinterest every single day.

Retailers and brands are increasingly focusing their attention on social commerce.

But many struggle with the question: how do you convert a “like,” a “tweet,” or “pin” into a sale? Is social media really going to be a source of dollars and foot traffic?

In a recent report from BI Intelligence, we look at successful examples of businesses and business models for generating commerce via social media-based strategies, analyze Pinterest’s success as a social commerce platform, look at Facebook’s potential as a social commerce contender, and we examine the numbers behind the social commerce conversion and order value gap. The report is supplemented by rich datasets on social commerce, and subscribers will also receive full access to BI Intelligence’s full library of hundreds of in-depth reports, charts and datasets — including up to date coverage on social commerce.

Access The Full Report And Data By Signing Up For A Free Trial Today >>

Here’s an overview of the converging trends that promise to transform social media into a viable commerce platform:

BII social mobile purchases

BII specialty retail social platforms

BII_PinterestInStoresCOTD_7_11_13

BII AOV comparisons

Tags: , , , , , , , , , , , , , ,

Friday, August 2nd, 2013 charts No Comments

State of Media Employment

Source: http://www.businessinsider.com/the-state-of-media-employment-2013-1

tv, video, studio, huffington post, office tour, november 2012, bi, dng

The internet has caused massive disruption across the media landscape, causing a surge in job insecurity at traditional establishments.

But now we have a good look at the numbers.

The Bureau of Labor Statistics has put together a presentation on the recent history and direction of media jobs. It’s not pretty.

Across several different industries (radio, TV, newspapers, film, etc.) there’s been a steady downward march in employment.

Total media jobs peaked at the beginning of the decade.

Employment in the book/periodical/music industry has been on a steady downward trend, and in 2011 the bottom completely fell out of the industry.

Sound recording? Same deal.

See the rest of the story at Business Insider

Please follow Business Insider on Twitter and Facebook.

Dr. Augustine Fou is Digital Consigliere to marketing executives, advising them on digital strategy and Unified Marketing(tm). Dr Fou has over 17 years of in-the-trenches, hands-on experience, which enables him to provide objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI using digital insights.

Augustine Fou portrait
http://twitter.com/acfou
Send Tips: tips@go-digital.net
Digital Strategy Consulting
Dr. Augustine Fou LinkedIn Bio
Digital Marketing Slideshares
The Grand Unified Theory of Marketing