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Forrester: iTunes sales plummeting

updated 06:45 pm EST, Mon December 11, 2006

Digital music plummeting?

Apple's iTunes Music Store has experienced plummeting sales revenues this year, according to Forrester Research. Although Apple refuses to disclose the revenues generated from its online multimedia storefront, an analysis of credit card transactions conducted by the firm over a 27-month period suggests that iTunes monthly revenues have fallen 65 percent since January. Nielsen Soundscan points to even worse news for digital music vendors, citing three consecutive quarters of flat or declining revenues for the entire sector, according to a report from The Register. Apple reported a 'blowout' quarter during its September conference call driven by notebook sales, and reported 'above-break-even' profits for iTunes Music Store revenues.




by MacNN Staff

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Comments

  1. Javizun

    Joined: Dec 1969

    0

    wow

    i mean come on, is more logical to get off your a** and get to your local store to obtain the cd restriction free to rip as you please. Over buying a drm file that can only be burned 5 times and play only on ipods.

    i mean call me stupid but i rather have the cd, that is guaranteed to last longer then a cdr and have the ability to rip as i please without restrictions.

  1. gskibum3

    Joined: Dec 1969

    0

    javizun is Right.

    I don't buy much music myself, but javizun is right on. I much prefer to have the CD over the stupid DRM downloads.

    Are there many copy protected CDs these days?

    However, how does this drop compare to music sales overall?

  1. nat

    Joined: Dec 1969

    0

    i'm with ya

    i tried the apple store but eventually went back to cd's for all the reasons you name. plus i like having the insert to pull out and read.

  1. firebird06

    Joined: Dec 1969

    0

    Don't mind DRM

    I don't mind DRM at all. The only reason I ever burn CDs these days is to burn a backup copy of albums I buy from the iTunes Store. The restrictions are in place to protect against piracy, a reason I as a musicianwhole-heartedly embrace.

  1. simdude

    Joined: Dec 1969

    0

    Burning

    Agreed on the quality, however, as far as burning (from Apple's site):

    "Unlike some applications that limit the number of CDs you can burn, iTunes lets you burn as many custom CDs as you like. And iTunes prints pro-quality inserts to accompany your mix."

    I do wish Apple would bump the quality to at least 192 bps AAC. I've found this to work well for my own CDs (i.e. I did some blind tests and when I ripped at 128 AAC I could tell the difference on many tracks but at 192 almost all were indisguishable, at least to my ears.)

  1. zl9600

    Joined: Dec 1969

    0

    rarely buy cd's

    I can't stand CD's. Period. Pain in the freaking a**. I am willing to give up some rights I'll never go beyond for the convenience that iTunes gives me.

    That said, I've been buying less and less. I wish iTunes would set up a wishlist, I'd probbaly buy more. And I wish they'd actually respond to customers like me who continually ask them to carry full albums and get more artists than they currently have. But I understand.

    So I just rely on XM and 'net radio like KCRW to keep me with the freshest music out there, because I tire quickly of my purchased tunes.

  1. machead

    Joined: Dec 1969

    0

    hmm

    I hate owning CDs.. they take up room and I end up throwing htem away after they have sat in a closet for a few years. Having said that.. I also hate DRM. Whats a consumer to do?

  1. Monde

    Joined: Dec 1969

    0

    A mixed bag

    iTunes is a mixed bag and may need tweaking, but it is versatile and quite convenient. If I want a tune or wish to sample tracks-it's great! For fidelity's sake, ripping from CDs is preferred and I get them when it counts. I'd like it if Apple boosted the bit rate up to 192kps. I don't see why not, they upped the quality of the video. Perhaps they'd have more sales. I guess, when I buy from iTMS, it is kind of an impulse buy anyway. As it turns out I find the TV offerings more appealing than any other aspect of the store.

  1. ThorBear

    Joined: Dec 1969

    0

    No more back catalogue

    I know 95% of my iTunes purchases are one and two songs from an artist that I would never buy the album from. I think I have gone through and bought most of those songs that I just like that one song.I think this is where the big fall off has come from.

  1. Monde

    Joined: Dec 1969

    0

    Wow reply

    You do know that you can burn your purchased itunes music onto audio CD and rip it back into itunes, stripping it the DRM restrictions?

    Further-you should back your music collection just-the-same using the rule of threes. To optical disk, external drive, then back it all up again and keep it off-site. It's the price you have to pay for a "digital" lifestyle.

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