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iOS Devs Earned as Much Collectively as Hollywood did From US Box Offices in 2014, Says Analyst

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Apple has recently revealed that the apps on the iTunes store generated over $10 billion in revenue for developers in 2014, which is an impressive achievement. And according to recent data coming from BoxOfficeMojo, it seems that Hollywood also took $10 billion in box office revenues.

This has prompted analyst Horace Dediu from Asymco to do some comparison between the two industries. As a result, he claims that in 2014, iOS app developers actually earned more than Hollywood did from box office in the US. Here's his explanation:

Although the totals for Domestic (US) Box Office are not the complete Hollywood revenues picture, Apple’s App Store billings is not the complete App revenue picture either. The Apps economy includes Android and ads and service businesses and custom development. Including all revenues, apps are still likely to be bigger than Hollywood.

But there’s more to the story. It’s also likely that the App industry is healthier. On an individual level, some App developers earn more than Hollywood stars and I would guess that the median income of app developers is higher than the median income of actors. The app economy sustains more jobs (627,000 iOS jobs in the US vs. 374,000 in Hollywood) and is easier to enter and has wider reach. As the graph below shows It’s also growing far more rapidly.

What the analyst is asserting is, of course, debatable. But what's made pretty obvious in his piece is that developers will keep aiming for iPhone and iPad users when they release new apps. As a matter of fact, a fresh report by app analytics firm App Annie last year revealed that Apple's App Store generates about 85 per cent more revenue than Google Play.

Source: Asymco
 
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