Apple iTunes Gift Cards help boost growth of digital music in U.S.

“Gift vouchers for digital music tracks are helping to boost the growth of digital music in the U.S., a senior executive for Universal Music Group, or UMG, a unit of Vivendi Universal, told Dow Jones Newswires Thursday,” Jessica Hodgson reports for Dow Jones Newsletters. “Larry Kenswil, President of Universal’s eLabs unit, with overall responsibility for Universal’s new technology operations, said: ‘In the U.S. there’s been fantastic gift card download sales.’ UMG is the world’s largest music company by sales. Kenswil said the ‘seasonal’ nature of digital sales had taken executives at Universal by surprise. ‘Towards the middle of last year we were wondering if the digital revolution was over. But after the holiday season sales really picked up as a result of gift cards.’ Kenswil said gift cards were helping to introduce digital music to a generation of consumers who hadn’t previously experimented with the format.”

“The recorded music industry is beginning to recover from five years of falling revenues, caused largely piracy and the growth of unauthorized file-sharing Internet networks. However, the recent success of services such as iTunes and other music download services is seen by analysts as helping the music industry to recover,” Hodgson reports.

Full article here.

MacDailyNews Note: Why Universal execs are surprised by the seasonal nature of music sales is anybody’s guess. What, they don’t have enough decades of music sales data with which to allay their surprise? Such foolishness. Also, the full article, for some reason (misguided political correctness or something), attempts to include the piddling also-ran online outfits, but make no mistake: Apple’s iTunes Music Store has around 90% of the market in the U.S now. Apple’s iTunes Music Cards are the gift cards that are boosting sales. That fact bodes well for Steve Jobs as he negotiates another round of contracts with the “greedy” music labels.

Get the new iMac with Intel Core Duo for as low as $31 A MONTH with Free shipping!
Get the MacBook Pro with Intel Core Duo for as low as $47 A MONTH with Free Shipping!
Apple’s new Mac mini. Intel Core, up to 4 times faster. Starting at just $599. Free shipping.
Apple’s brand new iPod Hi-Fi speaker system. Home stereo. Reinvented. Available now for $349 with free shipping.
iPod. 15,000 songs. 25,000 photos. 150 hours of video. The new iPod. 30GB and 60GB models start at just $299. Free shipping.
Connect iPod to your television set with the iPod AV Cable. Just $19.
iPod Radio Remote. Listen to FM radio on your iPod and control everything with a convenient wired remote. Just $49.

Related articles:
Report: music labels on verge of abandoning demand for variable pricing on Apple iTunes Music Store – April 20, 2006
EMI, Vivendi Universal music sales rise dramatically on Apple iTunes Music Store downloads – April 20, 2006
5,000 Coinstar machines in U.S. now turn spare change into Apple iTunes Store gift cards – April 12, 2006
Global digital music sales tripled in 2005 thanks to Apple’s iTunes Music Store – March 31, 2006
Apple’s iTunes+iPod market dominance underscored with more than 1 billion songs sold – February 24, 2006
Nielsen NetRatings: Apple iTunes Music Store visits grew 241% in 2005 – January 23, 2006
Record 20 million tracks downloaded from iTunes, others in week after Christmas – January 09, 2006
Apple CEO Steve Jobs to repel ‘greedy’ record companies’ demands for higher iTunes prices – September 21, 2005


  1. Apple should now threaten to remove Warner Music Group’s content off of iTunes if they don’t reduce the cost of the songs from 99 cents to 89 cents.

    The WMG stock would plummet, as maybe 20% of their total profits now come from the iTunes store.

  2. Ahhhh, the addition of Porn to the conversation-sex always finds it way into a conversation.

    BUT! (no pun intended)

    It makes a one hell of a boat load of money!!!!!!!!! AND—–

    What would happen if Porn moved into music industry-would they “stick” it to them or “rub” them the wrong way? Would the greedy executives be sweating from the competion or finding a new bed-fellow or girl!

    Only time will tell.

    ITS A THOUGHT ” width=”19″ height=”19″ alt=”wink” style=”border:0;” />

  3. Isn’t it wild how the music industry is fighting instead of working with apple to promote their bands and groups with ads like “now available on iTunes”

    The iPod’s are out in the market, now encourage people to buy your music.
    Offer DVD type “bonus” videos or interviews to get folks to buy songs.
    Apple doesn’t advertise iTunes on TV, they advertise iPod. Ipod is good for Apple and iTunes is good for the music industry, they get 80% of every dollar.

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.