Many were unsure whether Apple’s newsstand would catch on, and whether it would be a smart gamble for publishers. As it turns out, Apple’s Newsstand is quite lucrative, raking in approximately $70,000 per day on newspapers and magazines.
According to app analytics company Distimo, Apple’s Newsstand is driving digital publication sales, with the majority of the revenue coming from in-app purchases.
Most magazines and newspapers are free downloads, allowing providers to give a taste of the included content as well as provide a variety of different subscription and purchasing options in one spot.
Subscriptions or individual issues of the New York Times, The Daily, and the New Yorker are at the top of the list of digital downloads, raking in the most revenue.
In total, news apps account for 7 percent of the highest grossing apps. As with all in-app purchases, Apple takes a 30 percent cut of all news and magazine sales.
Apple’s Newsstand was first unveiled in October of 2011 with the release of iOS 5. The app is designed to gather all of an iPad or iPhone user’s newspaper and magazine apps in one aggregate app.