The Mobile Internet Report Key Themes*

Apple iTunes Store Revenue –
$6B in Revenue from 17B Song + Video + App Downloads in 2012E
2008A 2009E 2010E 2011E 2012E
iTunes Content Revenue ($MM) $2,571 $3,358 $4,263 $5,120 $6,234
Y/Y Growth 45% 31% 27% 20% 22%
Songs $2,125 $2,540 $2,978 $3,144 $3,431
Y/Y Growth 43% 20% 17% 6% 9%
Videos $428 $601 $784 $965 $1,199
Y/Y Growth 49% 41% 30% 23% 24%
Apps $19 $217 $501 $1,011 $1,604
Y/Y Growth -- 1041% 131% 102% 59%
Item Average Selling Price (ASP - $) $0.87 $0.61 $0.51 $0.42 $0.36
Songs ASP $0.92 $0.97 $0.99 $0.99 $0.99
Videos ASP $1.99 $1.99 $1.99 $1.99 $1.99
Apps ASP $0.04 $0.08 $0.10 $0.12 $0.12
Items Downloaded (MM) 2,970 5,467 8,407 12,082 17,434
Y/Y Growth 74% 84% 54% 44% 44%
Songs Downloaded 2,310 2,633 3,008 3,175 3,466
Y/Y Growth 48% 14% 14% 6% 9%
Videos Downloaded 215 302 394 485 602
Y/Y Growth 49% 41% 30% 23% 24%
Apps Downloaded 445 2,531 5,005 8,422 13,366
Y/Y Growth -- 469% 98% 68% 59%
Cumulative Downloads (MM) 6,694 12,161 20,568 32,650 50,085
Songs Downloaded 5,815 8,448 11,456 14,632 18,098
Videos Downloaded 434 736 1,130 1,615 2,218
Apps Downloaded 445 2,976 7,982 16,403 29,769
Note: Revenue only includes Apple’s revenue, does not include revenue for developers. App revenue for Apple represents 30% 162
of total iTunes App ecosystem revenue. Source: Morgan Stanley Research estimates.