iTunes Music Store sales soar in first half 2006

“US download music sales increased by 77% in the first half of 2006, while album sales fell by 4.2%, according to research company Nielsen Soundscan,” BBC News reports.

“More than 14 million full-album downloads were bought, compared with 6.5 million purchased during the first six months of 2005,” The Beeb reports.

“Although digital sales are growing, music fans are eschewing the more profitable full-album downloads in favour of cherry-picking a few songs,” The Beeb reports.

Full article here.

MacDailyNews Note: Apple’s iTunes Music Store dominates the U.S. market with 72% of music downloads according to NPD Group.

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50 Comments

  1. The amazing thing is that human beings, witnessing human behavior can’t grasp that people want what they want. I don’t want to pay for music I don’t own, don’t want to listen to more commercials on an mp3 player with a radio, don’t want to be MORE limited by a DRM scheme more limiting than the surprisingly liberal Apple DRM, and want to hear the songs I like instead of buying some I don’t.

    Why is this so amazingly hard for every other music service, and manufacturer to figure out? In Hollywood they just blatantly copy something successful and this actually works quite often!
    Why doesn’t Microsoft strike the SAME deal as Apple, make a tiny, cheap and beautiful music player that lets you put it on 5 computers, burn it to a disc a few times, share the music with others on your local network, and lets you get around it by burning and re-converting? Why is this so hard to imitate? I’m TRULY glad they have not but it’s not clear to me why this non-copyrightable pattern of Device,Store, and DRM has clearly totally escaped them!!!

  2. That’s just it– they honestly think their way is better. That’s what makes it so funny. And sad, I guess. No matter how many “features” they cram into their products, they’re never going to be the cool kids on the block.

  3. Why? It’s because of Microsoft. MS wanted in on the action, so it pushed Windows Media Player and its DRM on all (or most) of Apple’s potential competition. So outside of Apple, the standard became one “partner” (MS) provides the PC interface software, one makes the player hardware, and one runs the online media store. Unfortunately for MS, in this space, Apple is dominating and MS is only getting its piece of the action from Apple’s leftovers.

    Sony is the only company who could have succeeded with Apple’s formula. It’s somewhat surprising that it has been so incompetent with it’s Walkman brand. If Microsoft had tried several years ago with providing the end-to-end product (as rumors say it is now), it could have succeeded. But as things stand now, it’s Apple’s game to lose…

  4. Uh let me guess

    All those people that got shiny new iPods for the holidays started to fill them up by buying music from iTMS in the first half of 2006.

    Can I have that cookie now?

    And yes when your building a rather large collection of music you can be a fool and pay for and download music by the album. Which most of it you’ll never hear more than once and just wind up clogging hard drive space. OR you can cherry pick your music, pay less and have less to catagorize/rate/group so you don’t accidently wind up listening to hours of garbage.

    I have a rather substancial music collection, all legit, half came from cd’s which only a small portion do I bother listening to anymore, the crap songs got ripped with the cds and now they just sit there taking space.

    Once iTMS came out, I started cherry picking songs, because I don’t DJ for anyone that I need every song to fullfill requests. The money I saved by not having crap songs I applied to other artists, so I still buy the same volume of music, just spend the money more evenly amongst many artists.

    So this “big scare” that because people won’t buy albulms and therefore artists are not getting as much money is bullsh*t. The more quality songs a artist produces, the more people will buy.

    If a artist only produces a one hit wonder and the rest of a album is pure utter cr*p why should we have to pay the same price for another artists album which has 1-12 good songs?

    Since the physical medium is eliminated, so is the fixed costs.

  5. I just realised that if MS will pay for all the purchased songs in your iTunes library this make it a SAFE purchase to get an iPod and purchase songs through the iTMS even if you are thinking about getting a rival MS player. If MS fail in delivering their rumoured promise you haven’t lost anything. Thank you MS for making the iTMS a guaranteed real ‘Plays for sure’ purchase.

  6. “US download music sales increased by 77% in the first half of 2006, while album sales fell by 4.2%, according to research company Nielsen Soundscan,” BBC News reports..

    I’m having a hard time with this statement.

    In order for iTMS sales to have grown 77% (Q2 & Q3 Year over Year), then Q3 sales had to have DROPPED BY 34% FROM Q2/06 LEVELS.

    I just don’t see that happening. I forecasted 4% Quarter over Quarter growth (216% Year over Year), and an invoice # check indicates Apple was on track to do that.

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