Goldman Sachs predicts that Apple’s iPhone App store and Amazon’s Kindle e-book store will each generate more revenue that YouTube this year, despite the fact that YouTube has millions more users. The Sachs analysis projects that by 2010 Apple will have 4 times the gross revenue of YouTube and that the Kindle store will be 50% above YouTube. The analysis also predicts that this year Apple’s net revenue will surpass YouTube’s gross.
This is a classic lesson in the value of premium content versus pure volume. And for Apple and Amazon, the news gets even better when you consider the fact that their respective stores are ancillary to their main products: the iPhone and the Kindle e-reader.
For the full "Tech Trends" from the week of 8/10/09, click here.
