February 2013
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Month February 2013

Entries 5 Total

Measuring the iBook market

Feb 28, ’13 3:22 PM

In June of 2011 Apple announced that 130 million ebooks were sold through iTunes. In October of 2012 it announced that 400 million sold.

That means 270 million ebooks were sold in 16 months. Or about 17 million units per month, on average. It also suggests 2012 ebook sales of about 200 million units.[1] The following graph shows the download rate of books relative to apps and songs:

Screen Shot 2013-02-28 at 2-28-3.09.25 PM

The download rate looks paltry but we need to remember that Apps have a very low average selling price (about 23 cents including in-app purchases) and that Songs are probably priced around $1.1 on average. In contrast each ebook could be generating about $10 per download.

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Feb 28, ’13 11:36 AM

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LG’s new Tele-vision

Feb 27, ’13 2:21 PM

LG Electronics has acquired HP’s WebOS for an undisclosed amount. When last it changed hands WebOS was part of Palm which was purchased for $1.2 billion in 2010.

Palm has thus been effectively divided into several smaller pieces distributed as follows:

HP will own:

  • Support of existing Palm users
  • Palm back-end assets including source code, infrastructure and talent
  • webOS patents

LG will own:

  • Stewardship of the Open WebOS and Enyo open-source projects where the source code resides
  • Associated talent
  • WebOS websites
  • License for IP related to webOS

LG announced that it plans to offer an “intuitive user experience an Internet services across a range of consumer electronics devices.” In an interview, the CTO of LG said that given the current situation with Android, LG does not plan on making smartphones running webOS but will use it in televisions and other devices such as cars, signage and appliances where there are no embedded OS’s. “We’d like to secure a software platform across all devices.”

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The iTunes Value Structure

Feb 26, ’13 6:11 PM

The International Federation of the Phonographic Industry (IFPI) reported that global digital revenues were $5.6 billion in 2012. This represented about 9% growth from 2011 and accounted for 34% of total industry revenues[1].

Apple regularly reports iTunes as a separate revenue item and occasionally it also reports payments data for developers and app download rates. By interpolating the data published and combining it with some assumptions it’s possible to estimate the mix of revenues (and costs) associated with iTunes.

My yearly estimates are summarized below.

Screen Shot 2013-02-26 at 2-26-6.04.23 PM

Note that I also included historic digital music industry revenues (as a line). I also included the following summary items:

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Panel Discussion with Horace Dediu, Devin Hunt, and Marko Taipale @Tampere Goes Agile 2012

Feb 26, ’13 3:24 PM

Building the right thing.

Why do some companies seem to be able to build products that fit their customers’ needs exactly while some do not? How to build a company that builds the right thing?

 

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