iTunes Music Sales Are Plummeting This Year

Apple-Cook-Tim-iTunes-FestivalReutersApple CEO Tim Cook.

iTunes music sales have fallen 13% since the beginning of the year, The Wall Street Journal’s Hannah Karp reports.

The decline in sales is not a surprise for Apple — sales were down 2.1% in 2013 — but the news underscores how consumers have steadily moved away from a-la-carte offerings like iTunes toward streaming services like Pandora and Spotify.

Apple is believed to have purchased Beats Electronics in part because of its streaming service, Beats Music, to integrate a streaming option into iTunes.

Apple is reportedly in talks with record labels to lower the cost of Beats Music, which runs users $US9.99/month or $US99.99/year.

Last month, Apple denied rumours it would shut down Beats Music, saying instead that a rebrand was likely.

As you can see, iTunes music revenue has been bumpy but essentially flat since 2010. Consumers are much more interested in iTunes for its app offerings.

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