If a report published in Business Insider is to be believed, Apple’s iPad generates a sizable amount of money for publishers through Newsstand.
According to a study by analytics firm Distimo, iPad users spend about $70,000 each day on tablet-optimized newspapers and magazines through Newsstand. This translates to roughly $25.5 million in yearly sales of publications on Newsstand, through Apple’s online content store.
Business Insider takes into consideration that Apple has sold 65 million iPads and Newsstand is generating $70,000 a day. This equates to the average user spending $.001 a day on magazines or newspapers. Even more depressing, this means the average user is only spending $0.37 a year on magazines or newspapers.
Still, Distimo claimed that Newsstand helped push digital publication sales. News apps account for about 7% of the top 200 grossing apps. Most of the revenue comes from in-app purchases. Apple rakes in 30% off the top of these revenues. This means that $25.5 million a year is really closer to $16 million a year.
Which newspapers and magazine do you like to read from Newsstand on your iPad and how much do you spend on them? Post your comments.