Apple confirms decline in sales of iTunes digital music downloads Image Credit: Source: Apple In a securities filings, Apple confirmed what just about everyone else suspected: Sales of iTunes music downloads are falling. The admission came in the company’s annual report filed yesterday with the U.S. Securities and Exchange Commission. “Growth in net sales from the iTunes Store was driven by increases in revenue from app sales reflecting continued growth in the installed base of iOS devices and the expanded offerings of iOS Apps and related in-App purchases,” the company wrote. “This was partially offset by a decline in sales of digital music. The news is not exactly a shocker. After all, industry figures show subscription streaming services like Spotify and Pandora are growing in popularity while digital downloads are declining. The Recording Industry Association of America reported that in the U.S. sales of music downloads fell 11% and 14%, respectively, during the first six months of 2014. At the same time, streaming music services saw revenue jump 28% in the first half of 2014, the RIAA said. Naturally, people have assumed Apple was probably taking some kind of hit. Indeed, just a couple of days ago, the Wall Street Journal reported that sources had said sales of music at iTunes had fallen 13% to 14%. And earlier in the year, a Morgan Stanley analyst had claimed iTunes music sales were falling. The falling sales were, in part, behind the assumption as to why Apple paid $3 billion to acquire Beats. Though at the time the acquisition was announced, Apple danced around the question of whether iTunes music was in trouble. That didn’t stop everyone from speculating that Apple was paying big bucks to Beats’ founder Jimmy Iovine and Dr. Dre to reboot its relationship with music labels and artists. “These guys are really unique,” Apple chief executive Cook said at the time. “It’s like finding the precise grain of sand on the beach. They’re rare and very hard to find.” More recently, reports have indicated that Apple plans to fold the Beats Music streaming service into iTunes next year. The company launched Apple designs and markets consumer electronics, computer software, and personal computers. The companys best-known hardware products include the Macintosh line of computers, the iPod, the iPhone and the iPad. Apple software includes t... read more » Pandora gives people music they love anytime, anywhere, through connected devices. Personalized stations launch instantly with the input of a single seed – a favorite artist, song or genre. The Music Genome Project®, a deeply deta... read more » Spotify is a Swedish DRM-based music streaming service offering streaming of selected music from a range of major and independent record labels, including Sony, EMI, Warner Music Group, and Universal.[ Launched in October 2008 by Swedi... read more » ift.tt/1a4hrTW
Posted on: Tue, 28 Oct 2014 07:57:36 +0000
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