The Mobile Internet Report Key Themes*

Digital Content –
Apple iTunes Shows Monetization Potential with $41 Annual Spending per User
Apple iTunes Content Revenue / Download / User Model, 2006E-2012E
CAGR
($ in millions, except for per user data) C2006 C2007 C2008 C2009E C2010E C2011E C2012E C08-12E
iTunes Content Revenue ($MM) $1,225 $1,768 $2,571 $3,358 $4,263 $5,120 $6,234 25%
Y/Y Growth 113% 44% 45% 31% 27% 20% 22%
Cumulative Downloads (MM) 2,021 3,724 6,694 12,161 20,568 32,650 50,085 65%
Songs Downloaded 1,946 3,505 5,815 8,448 11,456 14,632 18,098
Videos Downloaded 75 219 434 736 1,130 1,615 2,218
Apps Downloaded -- -- 445 2,976 7,982 16,403 29,769
Cumulative Registered Users (MM) 31 46 75 103 130 161 197 28%
Y/Y Growth 68% 48% 62% 39% 26% 24% 23%
iTunes Revenue Per User ($) $46 $44 $41 $36 $35 $34 $34 -5%
Y/Y Growth 9% -4% -7% -12% -3% -3% -1%
Item Downloads Per User 45 43 47 59 70 81 95 19%
Y/Y Growth 4% -5% 10% 26% 18% 17% 17%
Source: Katy Huberty, Morgan Stanley Research estimates. 342