“Apple has opened exploratory talks with senior label executives about the possibility of launching an on-demand streaming service that would rival Spotify and Beats Music, according to three people familiar with the talks,” Ed Christman reports for Billboard. “Apple is also thinking about adding an iTunes App for Android phones.”
“The surprising discussions are part of a multi-pronged strategy to deal with the double-digit decline in U.S. download sales at Apple’s iTunes Music Store, the largest music retailer,” Christman reports. “Apple is considering a range of efforts to support the iTunes Store… But it’s the talks around on-demand subscription and the iTunes App for Android that will most intrigue label heads and the wider market. Apple founder Steve Jobs was widely known to have argued that fans would never subscribe for music. Moreover, up until now, iTunes has been committed to keeping the iTunes ecosystem closed off.”
“But now, nearly three years after Job’s death, iTunes has to consider the option because so far this year, U.S. digital album sales are down 13 percent for the week ended March 9, and digital track sales are down 11 percent from last year, according to Nielsen SoundScan,” Christman reports. “With iTunes accounting for more than 40% of U.S. recorded music revenue any decision it makes about its business model will have a significant impact on the labels’ business models. ‘They are feeling out some people at labels on thoughts about transitioning its customers from iTunes proper to a streaming service,’ says one major label source. ‘So when you buy a song for $1.29, and you put it in your library, iTunes might send an e-mail pointing out that for a total of, say, $8 a month you can access that song plus all the music in the iTunes store. It’s all in the ‘what if’ stage.'”
Read more in the full article here.
I’m shocked. No MDN take?
I’m shocked there is no “racketeering” take!
1. Where are they getting 13% decline number from?
2. Android users don’t pay for music or software/apps.
Meanwhile over at Apple Insider, this headline and story is displayed:
“iTunes and app sales projected to grow to 20% of Apple profit by 2020
By Neil Hughes
iTunes content and the App Store are projected to be key drivers of growth for Apple moving forward, with one new forecast calling for content and apps alone to account for 20 percent of profits by 2020.”
Meanwhile they said iTunes AND app sales. AND.
Give me higher rate files and I’ll think about buying from iTunes. I have my CD collection ripped as AIFF or ALAC files and subscribe to a DJ download service that gives me all the new music in the same format. I’ll use iTunes when I have to get an odd song request but that’s it.
Down 13% from last quarter? From last month? Ever heard of a thing called Christmas? That’s when people get new devices and buy from iTunes.
What would be different about iTunes for Android versus iTunes for Windows? Closed off? Where has this guy been all his life?
I don’t believe this article – with regards to the decline in downloads.
I do see Apple offering a Streaming music service on Android as a way to penetrate as a similar plan Apple did to win over Window users. Natural method of competition.
Furthermore, I would think Apple sees company’s like Netflix as places to invest in – if there were a real decline in sales regarding movie content. But Apple does offer rental and purchases on movie and tv shows. Something everyone else has copied.
The question is – has pirating won or is it winning over the consumers honesty?
Apples iTunes is more about legitimate purchases, where the Android market is geared to taking everything that is free and shady. And it’s this grey market – where ads and viruses plague the fragmented AndyBot eco-system.
The iPhone maker explores multi-pronged strategy to shore up double-digit drops in iTunes downloads, according to IFPI and RIAA data.
In other words, RIAA and IFPI have noted a double-digit increase in illegal downloads! So Apple’s iTMS is in decline?
After a search of the internet news about the “double-digit” quote, I noted everyone is using the same article, quote for quote.
Every newswire service article, el. al., AP, written about Apple is copied & pasted in all of the major news outlets. Doesn’t matter whether it’s factual or not, its viral and that’s all that matters.
“Moreover, up until now, iTunes has been committed to keeping the iTunes ecosystem closed off”
Not all that closed. iTunes has been on Windows from almost the start. I see no harm with is making an Android app for iTunes. Apple doesn’t need iTunes to sell iPhones.
Supply and demand – Economics 101. Maybe the music studios should work harder to produce some decent music if they expect sales to improve.