Posted on 12/12/2006 9:56:07 AM PST by jdm
Sales from Apple's iTunes digital download service have not kept pace with strong sales of iPod players, according to analyst company Forrester Research.
Apple doesn't reveal revenue from iTunes, but Forrester conducted an analysis of debit and credit transactions over a 27-month period.
The results released Monday show that since January, monthly revenue from iTunes sales fell by 65 per cent. The average transaction size declined by 17 per cent.
Apple's iTunes holds more than a 70 per cent share of the digital download market, but the Forrester study suggests this has more to do with nearly 60 million iPods sold since 2001 than a rush for iPod users to use the service.
Since the introduction of the iTunes Store in 2003, Apple is averaging about 20 iTunes tracks for each iPod sold, suggesting consumers aren't sold on the value of digital music, according to study author Josh Bernoff.
However, a report from Akamai's Net Usage Index for Digital Music released Monday revealed a more optimistic view for music downloading services in general.
Akamai reported digital downloading sites collectively experience a daily peak of more than half a million visitors per minute.
The Akamai study also suggests downloaders in general remain active, with 76 per cent of respondents spending $1-$5 on music downloads every week.
Akamai based its finding on a survey of 200 people aged 19 to 68.
ping
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or they are actually buying the CD and ripping it themselves...
I have actually found that I have been doing that more & more lately.
I do buy a lot off of iTunes though, especially books. I get so mad, however, when I want to get one song, and it is the ONE song that you have to buy the whole CD for. I have been trying to get Vindicated by Dashboard Confessionals forever, but they want me to buy the whole freakin' Spiderman sountrack for it, and I'm not doing that. Can anyone explain to me why they do that? Dashboard has plenty of other songs available through iTunes, and most of the rest of the songs on the CD is avaiable for purchase singly. Very annoying.
Blame allofmp3.com.
yea, ya might have to wait for a "single" OR get the soundtrack... thats the only one you want huh? I'm NOT a huge music fan(I like to make my own music I play some guitar)
It's probably in the terms between the record company and Apple, that certain songs are to only be available with the album.
Yea, it's the only one I want. It means something to me and my oldest daughter, and that is why I wanted it. LOL, normally it isn't my type of music. I'll just keep waiting I guess.
ahh... 99cents.. could do it in that case. lol
Apple doesn't care. The record companies get most of the revenue from the iTunes Store, so they're the ones that will be hurt by this. All Steve Jobs cares about is that people still keep buying the hardware.
Wow-
I had not seen that before. Thank you so much.
lol
I've only used the iTunes gift cards. I purchase them periodically and use them up.
I wonder if this study misses all iTunes gift card purchases. If that's the case it's bogus.
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