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.

  7. It kinda knocks me over to hear people complaining all the time about CDs containing only one good song. Makes me wonder, do these people even like or respect the artists they’re listening to? Most artists I listen to, I don’t just want all the songs on the latest CD, I want all their CDs. As for cherry-picking, if I did that, I’d be missing out on a whole lot of great music. More often than not, my favorite song on a CD after a few weeks or months of listening is one that I didn’t particularly care for the first time around. Maybe the cherry-pickers should just stick with the “Best Of” collections. Me, I’m buying actual CDs – lots of pleasant discoveries, and the sound quality’s noticably better than 128kbps AAC on a decent stereo.

  8. The title of this post is misleading. The original article says nothing about the iTMS. While it’s likely that Apple sales increased significantly (roughly 72% of the 77% increase or more), there’s nothing in the article that links the increase in sales to the iTMS.

  9. Majikthize dude

    I got over 500 artists and by your reasoning I should buy all their cds at $20 a pop new? (because I’m sure not going to buy some used scratched disks)

    I have over 1000 albums (they are not all “full”) so lets do the math huh?

    Say I bought the full albums on cd.

    1,000 albums x $20 a album =$20,000 vs $7400 (apx 7400 songs in my Library @ 99¢ each and about 1850 are crap)

    So if I set out to spend $7400 for music and bought cd’s instead I would wind up with 370 full albums, and lets say a average of 50% crap songs on each album with 10 songs per cd.

    (after all you only get “the best of” of a artist usually after their music is already old and they had time to make enough hits to fill a cd. Some labels don’t even sell all a artists good songs on one cd to force you to buy several “albums”)

    That’s only 1850 good songs for $7400 via your way, instead of $7400 for 5550 good songs the iTMS way. 1850 good songs is the same amount I have as crap now cherry picking via iTMS/old cd collection.

    I would have saved $1850 if I started my music collection from iTMS to begin with.

    Now don’t give me that bullsh*t to go scrounging around yard sales and flea market line.

    My time and labor is worth a hell of a lot more that $20 a hour, closer to $45 a hour. So there is no savings there, I could buy two cds brand new a hour with my time working for somebody than I could buy one at $10 at a flea market. No to mention gas costs.

    And don’t give me that, “cd club” BS either, I’ve milked those punks and it’s a scam, the cd’s are cheap but they smack a hidden per cd S&H charge. The only way to win with them is to have multiple accounts with many friends doing it. And then you still only get a few good songs per cd.

    With iTMS they grab a lot of impulse buying, I’ve bought more music because of iTMS because it’s just too much trouble to go to a store to stand in line to listen through crappy headphones to a cd.

    Here I get the music in a few minutes, it’s mine and it sounds great on my 7.1 1000 watt surround sound system. A lot better than iPods, beleive me, they sound horrible but that’s what most people use.

    If there is some particular album that I would like to hear as much quality as possible, then I would spend the extra bucks to buy the cd.

    But it’s stupid to use that high measure for every album I own because 99% of the time I don’t need it. And it’s even more foolish to pay $12,600 more for music than I have too.

    So I tried it your way, it sucks. iTMS fscking rules.

  10. If you had a budget of $7400 lump sum to spend, you could get wholesale price on your CDs.

    Wholesale means to buy multiple items of the same kind in bulk. This way they can ship it direct from the factory and skip the middleman (you become the middle man)

    Since I only need one cd per album, from different labels and artists, I have to go retail.

    But I understand what your saying, I should get a discount for buying so much and the cd clubs do that, but it’s not really a deal by the time one pays for the S&H charge applied to each cd.

    Say this: The deal is buy 3 cds and get one free. Each cd is $9.99 (including s&h) . Each cd holds 10 songs. 5 on average are good. 5 are crap.

    So I get 40 songs, 20 are good, for $30. I still get a better deal at iTMS and I get them right away, not 3 weeks later.

    And I don’t know if anyone has ripped cd’s before, but it’s a pain in the arse when you got a lot. So you wind up ripping the whole cd and then going through the trouble to backup the crap songs and ridding them out of iTunes.

    How much is my labor per hour worth again? Yea $45 a hour ripping cd’s when I could be doing a job for someone.

    Everyway one looks at it, iTMS is the most cost effective way to buy music.

  11. If you read the article there are many things that don´t make sense. It is a confusing, possibly misleading article.
    And no where does it even mention any sales facts regarding iTunes or Apple. And no where does the article say that the downloads were legal and paid for.
    MDN is just making up (as usual) the facts in their headline.

  12. Channel Z & Majikthize:

    I see both sides. A lot of the artists I listen to, I want the entire album because a lot of the songs, or even all of them are very good. Then there are some artists that maybe only a song or 2 are good. Either way, they end up in my iTunes and on my iPod. So, it’s really just sort of personal preference. Neither way is right or wrong, just different opinions/situations. Can’t we just see it that way? Up to the individual?

  13. Chris,

    Don’t get me wrong, if a entire album has good music on it, I’ll buy the whole thing.

    What’s even more nicer about iTunes is that I can go back and fill a partial album if I want too.

    I know artists are crying because they assume people buy just the hit “radio’ songs and leave the rest, but hit songs wear out quickly and people go back and buy some other songs on the same album.

    My critereia for songs is if I can stand listening to more than a couple of times. Since my collection is so huge I don’t listen to the radio anymore, so I’m not really influenced what the “radio” considers a hit song.

    iTunes changed the way we buy music, it’s a different concept than the physical medium that required a artist to “fill in” the album with inferior music.

    Now artists are less pressured, they can take a bit more time and make a better songs because they know if it sells well it’s 99¢ a copy. The focus is on creating better individual songs rather than having to take short cuts to fill a cd pressing date.

    With cd’s, it was like we consumers are forced to buy a bag of apples with a few good one’s on top and the rest unknown, we took our chances.

    Albums made some artists lazy, all they had to do was produce a few good songs and they got paid just the same as if another artist completly filled their albums with good music.

  14. Oh “One more thing…”

    I could have pirated all my music or bought it off the Russian site which gives nothing to the artists.

    But I appreciate the talent and work that goes into producing good music, as a consumer I want that to continue.

    I just don’t like paying for crap when I don’t have too. I work hard for my money too.

  15. With all of the talk of music and its value we should remember that children are hurting evrywhere:

    http://www.foxnews.com/story/0,2933,202601,00.html

    There are no buttercups in Boise. Without tenderness there can be no love. We have to know when to tell the record companies to take a hike.

    My verbal diahereia for life is if I can stand listening to myself more than a couple of times. Since my ego is so huge I don’t listen to anyone else anymore

    Now Channel Z says, Stop it.

  16. Channel Z: “Your all petty. I’m just contributing, nothing more.

    With Trusted Computing coming, you’ll all be on your knees bowwing to me in the near future.

    Its that simple.”

    I think you meant “You’re all petty.” And also “…you’ll all be on your knees bowing…”

    Finally, “It’s that simple.”

    Another glorious example of the fine quality of the US educational system. Remember, on the internet, everyone can see what you type.

  17. I think you meant “You’re all petty.” And also “…you’ll all be on your knees bowing…”

    That’s the Channel Z clone.

    I’m the real one and I didn’t post that.

    You’ll know the real one by the colorized seal of approval. ” width=”19″ height=”19″ alt=”wink” style=”border:0;” />

  18. Sputnik/MacDude/Channel Z:

    Sorry, I was never Sputnik.

    Personality disorder? Why so relentless, buddy?

    No and it’s been a slow news weekend so why not have some fun?

    Let loose a little, act CrAzY because tommorow is Monday and we have to go back to being conformists.

    *flings boogie and photo booths ass with iSight camera*

    %3Fv%3D0″ rel=”nofollow”>wanna see?

  19. channel z
    What is a good song? what is a crap one?
    what makes u decide if its good?
    it seems most songs i listen to the first time snd strange and i dont seem to like them, but over time i come to like them.
    some artist work hard to make a full cd with songs that are supposed to follow one another

    it seems channel z you must be missing alot so you can have a massive surface scraping

    love to hear some examples of your Good Songs/Crap Songs

  20. Hehehe more color moths to the flame. *poof* burn baby burn.

    what makes u decide if its good?

    If I think I can stand listening to it over and over and if I buy it.

    it seems most songs i listen to the first time snd strange and i dont seem to like them, but over time i come to like them.

    Well paying for a whole cd hoping you’ll like the crap songs later is not the way to go.

    With iTMS one can keep sampling the crap and see BEFORE buying it.

    And one can alays come back later and buy the crap if they really wanted to.

    some artist work hard to make a full cd with songs that are supposed to follow one another

    And some artists make a cd with songs that sound just like one another.

    iTMS gives consumers CHOICE, something we need.

    If I have to pay $20 a cd, I rather be a pirate and then everyone loses.

    MDN Word: “Choice” I like having a choice and not being forced to buy overpriced plastic.

  21. it seems channel z you must be missing alot so you can have a massive surface scraping

    let me get this straight, I don’t buy a artists crappy songs because I rather spend the money sampling other artists better music.

    And I’m supposely missing something?

    How can I miss something when I sampled the crappy songs and didn’t like them?

    Since I’m not going to listen to crappy songs, why bother wasting my precious hard drive space when it can be filled with music I do like?

    You make no sense.

  22. love to hear some examples of your Good Songs/Crap Songs

    I bet you would, I’ve spent many hours rating my 7400 music collection and it’s still not even close to being done. 4,900 songs yet to be rated!!!

    What screwed me up was all the cd’s I ripped with the crappy songs.

    With iTMS I make my decision right when I’m sampling it, this way it doesn’t even get on my machine.

    With the cd rips, I have more work to do. Another hassle and why cd’s are obsolete.

  23. Do you think Microsoft will sell the new player at loss like the XBox 360 to gain market. Maybe the unit will be equivalent to the 60 Video iPod but have wireless and they will sell it at 199.00 to get people to buy it and gain market? What do you think????

    Scott

  24. Thanks Holy Mackerel for the laugh.

    And I agree with both Channel Z and Majikthize. Sometimes I buy individual songs, but I mostly buy albums and find that most of the time I end up liking all the songs, or 90% of them, after listening to them for a while, even though the 30-sec preview of the song didn’t initially interest me.

    So that makes Channel Z right that I end up with some songs I don’t like, but since I don’t spend my time really trying to differentiate the chaff from the grain on iTMS, I think it’s not a big deal that I end up with a 10% dud songs in my Library and on my iPod, and I save a little time when purchasing.

    To me, buying music these days on iTMS is like paying for TV. I enjoy consuming the content, not all of it is good, I probably won’t want to watch a program over and over again indefinately, I keep paying over time, and I enjoy the stuff while it still interests me. I am just paying for entertainment.

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