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Topic: iTunes sales falling

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  1. #1
    Senior Member Leaf's Avatar
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    Exclamation iTunes sales falling

    Apple ITunes Sales Slid in First Half, Forrester Says (Update4)

    By Dina Bass

    Dec. 12 (Bloomberg) -- Apple Computer Inc.'s iTunes music store suffered a 65 percent slump in sales during the first six months of the year, reversing almost two years of gains, according to a Forrester Research Inc. report.

    The number of iTunes transactions declined 58 percent between January and June of this year, while transaction size fell 17 percent, the Cambridge, Massachusetts-based market- research firm said today. ITunes spokesman Tom Neumayr said the report is ``simply incorrect.''

    ``ITunes won't save the music business, or Apple,'' analyst Josh Bernoff wrote in the report.

    Forrester, which based its findings on analysis of 2,791 U.S. iTunes debit and credit purchases, said it is too soon to tell whether the decline is seasonal or if demand for digital music is falling. Apple got $452 million in sales last quarter from music sold through iTunes as well as accessories for its market-dominating iPod device, the company reported in October.

    Shares of Cupertino, California-based Apple fell $2.61, or 2.9 percent, to $86.14 as of 4 p.m. New York time in Nasdaq Stock Market composite trading. Before today, the stock had gained 20 percent this year.

    No Recovery

    In 2005, iTunes sales dropped after Christmas before rising ``significantly' in May of that year. That recovery didn't materialize this year, Forrester said.

    Steve Lidberg, an analyst at Pacific Crest Securities, said in a note today he doesn't see a slowdown in digital music sales. Lidberg, who's based in Portland, Oregon, and rates Apple ``outperform,'' cited other data from researcher SoundScan that show weekly digital album sales have more than doubled to date.

    The Forrester report also found that most music stored on iPods isn't purchased from iTunes. Apple sells about 20 iTunes songs for each iPod purchased, even though the devices can store hundreds or thousands of songs.

    Many iTunes buyers purchase a few songs at a time with the median size of transactions at $2.97, the report found. One- third of all purchases cost $1.08 or less.

    The iTunes store had a profit in the quarter ended Sept. 30, according to Apple. ``Our view continues to be that selling music and TV shows and now movies helps us to sell iPods and accessories,'' Apple Chief Financial Officer Peter Oppenheimer told analysts on an Oct. 19 conference call.

    Apple started iTunes in April 2003 to help broaden the iPod's appeal. The iTunes store offers more than 3.5 million songs, 250 TV shows, 9,000 music videos and 100 movies. Apple has sold more than 1.5 billion songs through the site and said it sells more than 1 million videos a week.

    To contact the reporter on this story: Dina Bass in Seattle at dbass2@bloomberg.net .
    Last Updated: December 12, 2006 17:24 EST
    http://www.bloomberg.com/apps/news?p..._4k&refer=home



    I propose we offer Apple some constructive criticism on how to make iTunes music a hot item again in case the decline continues. IMHO, the price is good but a few tweaks are in order to make it more user friendly, like first removing the crazy padlock on the music. You have to admit that a lock on a peice of music regulating when, where or how it used is pretty darn strange, and maybe the decline in sales is caused by people now knowing this is no ordinary purchase of a recorded piece of music.

    When i reinstalled XP, I put it on a larger hard drive than before, and when I tried to play an iTune it said I had to authorize my computer, which I did. Then it informed me, I can authorize up to 5 computers. Shouldn't the limit be however many computers I have, as in no limit?

    Policing should not be on the piece of music (which is not only crazy and something very new, it is probably very also very costly), they should just have a law against stealing music with cops arresting the violators and their accomplices.

    A feature that i think would be nice, since they already spy on you like peeping toms to watch what you play and know what you purchased, is if you lost a tune that you payed for, you could go get again for free.

    What do think would improve sales? Is this is just a slump that will soon work it self out?


    David

  2. #2

    Re: iTunes sales falling

    I'm still a tangable CD person. Buy CDs! (if you can)

    Padlocks, DRM, etc... not appealing...
    Sean Patrick Hannifin
    My MP3s | My Melody Generator | my album
    "serious music" ... as if the rest of us are just kidding

  3. #3
    Senior Member Leaf's Avatar
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    Re: iTunes sales falling

    I agree, Sean.

    Before I was environmentally conscious, if I bought a CD and ended up not liking it much, I would fly it like a frisby as far as the eye could see... but the ones i liked i still have and and can take them anywhere, listen to them on any computer or CD player.

    Some young kid a little 10 0r 11 year old girl sent an idea to Apple and they didn't like it. It was including a text of the lyrics with the sale of an iTune. I thought it was a great idea and to take it a step farther they could include a score for an additional charge.

  4. #4

    Re: iTunes sales falling

    Actually, that would be an interesting idea to develop...um, I'll be right back. Just gonna look up a few APIs or whatever is needed to implement the Finale and Sibelius players into my latest creation.
    Colton J. Provias
    Film Score Composer, Location Sound Mixer, and Sound Editor
    Full-stack Web Developer

  5. #5

    Re: iTunes sales falling

    Quote Originally Posted by Leaf
    Some young kid a little 10 0r 11 year old girl sent an idea to Apple and they didn't like it. It was including a text of the lyrics with the sale of an iTune. I thought it was a great idea and to take it a step farther they could include a score for an additional charge.
    Ooo... that would be awesome! Though I would think it would probably cause more trouble than benefits, what with having to license copyrighted lyrics that listeners can probably find somewhere online themselves anyway. Scores would definitely be fun though.
    Sean Patrick Hannifin
    My MP3s | My Melody Generator | my album
    "serious music" ... as if the rest of us are just kidding

  6. #6
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    Re: iTunes sales falling

    Personally, I bought a couple songs from iTunes, just because I had to listen to them for a job. Otherwise, I continue buying CDs, probably since I've grown in an era of concept albums.

    I wonder if the sales are falling due to increasing competition (I doubt this is the reason), or just because they sell the same stuff you can hear everywhere at commercial radios, and the curiosity for the new gadget has finally come to an end.

  7. #7
    Senior Member Styxx's Avatar
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    Re: iTunes sales falling

    Apple ITunes Sales Slid in First Half
    So sad ...
    Styxx

  8. #8
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    Re: iTunes sales falling

    According to a Businessweek report:

    Why iTunes Sales Are Down: Music Is Bad
    There's a lot of buzz going on about this Forrester Research report that portrays iTunes sales as "collapsing." Well, here's the thing: I don't think they were ever all that great to begin with. Sure, Apple has sold some 1.5 billion songs or more by now. But divide the number of songs sold by the number of iPods sold, and the average songs sold per iPod works out to about 22 songs each, and that's over the entire lifetime of the iTunes Store.

    I don't know about you, but I haven't been buying much music at all lately. And the reason is that I'm 1) too busy to listen all that much, and secondly, 2) I think that most new music put on the market these days is just abysmally bad....

    I have a theory also....

    The Sugar Plum Theory:

    The Garritan Community Christmas CD came out and people have been flocking to the free album. With so much great holiday music for free, the incentive to pay for mp3s has substantially diminished. Now people are rolling in sugar plums after downloading the album.

  9. #9
    Senior Member Styxx's Avatar
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    Thumbs up Re: iTunes sales falling

    I totally agree Mr. G!
    Styxx

  10. #10

    Re: iTunes sales falling

    One thing I would like is for iTunes to remember what I bought and let me listen to it wherever I go. The problem with locking the file to a small number of machines is really short sighted. How long do you expect to keep using the computer that you are reading this on?

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