Tuesday, March 27, 2012

Distimo study says Apple's Newsstand is generating $70K in sales per day for publishers

Every time I read another study that says that Apple's iPad is generating new readers or strong subscription sales I am reminded that it has only been two years since the launch of the original Apple tablet, and that far too many media consultants said they "don’t see a good use for the machine."

The latest report to come out originates from Distimo, a company that constantly is looking at the various app stores.

According to the report they issued today, Apple's Newsstand is now generating more than $70,000 per day for the top 100 grossing publications, despite the distribution channel being only six months old. In case you don't have a calculator, that adds up to $25.5 million a year – an impressive number, but still small compared to traditional channels.
Not surprisingly, the introduction of Newsstand pretty much puts to bed the debate that originally was conducted: paid apps versus in-app purchases (subscriptions). Distimo points out that the high revenue being generated from Newsstand "is almost solely based on in-app purchases" – meaning individual issues and paid subscriptions.

Other findings you might find interesting: China has surpassed the U.S. in being the largest market for free apps, but the U.S. is still the highest grossing country for the Apple App Store for iPad. The Distimo report gives the advice that developers should target Australia, Canada and the UK, in addition to the U.S.