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iTunes to benefit from increased music download trend

updated 10:50 am EST, Thu January 6, 2005

iTunes sales to help AAPL

A trend showing increased digital music sales could . Piper Jaffray said iTunes could see a significant boost in digital music downloading, according to Forbes. Maintaining its Apple rating of "outperform" with a $100 price target, the analyst noted that Nielsen Soundscan "shows a material uptick in digital downloads" in each of the last two weeks with track volumes at 5.046 million for the week ending December 26 and nearly 6.7 million the following week.

"Previously, weekly track sales had been bound between 3.0 million and 4.0 million throughout October, November and December. [Apple] will be the primary beneficiary of growth in the online music industry for a minimum of several quarters." Piper raised its iTunes December downloads estimate to 68.5 million--up from just over 52 million, which could mean as many 474 million downloads in calendar 2005--if the download rate holds up--nearly doubling the previous 2005 estimate of 256 million downloads.

by MacNN Staff





  1. technocoy

    Joined: Dec 1969



    I could have sworn that iTunes music store was THE REASON that legit music downloads were increasing.

    Apple hardly ever gets proper credit where it's due. lol


  1. mjtomlin

    Joined: Dec 1969


    re: funny...

    Yes, in fact during Apple's last music event Steve Jobs even mentioned that industry analysts said that legal music downloads were decreasing, then he showed that sales at the iTunes Music Store were increasing every month.

  1. loudpedal

    Joined: Dec 1969


    Cashing in?

    After all of those years of Apple producing a superior computer to the PC but having a very small market share, it's great to see Apple getting it's due for the excellent design and execution of the iPod/ITMS.

    I wonder if the reason that downloads increased over the past two weeks was that people were cashing in their ITMS gift certificates from Christmas.

  1. bigpoppa206

    Joined: Dec 1969


    Actually, no!

    Legal downloads have increased across the entire music industry and it seems to be a stable trend, not just a fluke. A recent article in the New York Times says "The data, covering a 52-week period, also show that the industry is beginning to tap the power of the Internet to generate sales, though free music still flows through online file-sharing networks. Sales of digital tracks through services like iTunes from Apple Computer
    exceeded 140 million, Nielsen SoundScan was expected to announce."

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