iTunes Spending Is on the Decline

June 3rd, 2014
in News, econ_news, syndication

by Felix Richter,

Now that Apple has confirmed its $3 billion acquisition of Beats Electronics and Beats Music, most people agree that it must be Beats’ streaming service that Apple is after.

Follow up:

Not only has iTunes Radio, Apple’s own streaming service, failed to make an impression, but music downloads, a market created and led by Apple, are on the decline. A Morgan Stanley research note supplies more evidence that Apple’s iTunes business could need a fresh coat of paint. According to the data, Apple’s customers spend less and less money in the iTunes Store. The average user spent $1.90 on iTunes in the first quarter of 2014, down from $2.90 a year ago and from $4.30 in Q1 2012.

While Apple probably doesn’t care too much about the lost revenue, they do care about something else: if consumers spend less money on iTunes, it probably means they’re getting their music fix from some other service. That in turn poses a real threat to Apple's hardware business, because Apple wants people to rely (and ideally depend) on its services in order to keep them locked in their ecosystem.

An iPhone owner using iTunes Match to have his music library readily available in the cloud is less likely to switch to an Android phone than one who listens to music using Spotify. Thinking of it this way, a well-designed streaming service fully integrated with iOS devices could do wonders for Apple’s iPhone business.

Infographic: iTunes Spending Is on the Decline | Statista
You will find more statistics at Statista


Make a Comment

Econintersect wants your comments, data and opinion on the articles posted.  As the internet is a "war zone" of trolls, hackers and spammers - Econintersect must balance its defences against ease of commenting.  We have joined with Livefyre to manage our comment streams.

To comment, just click the "Sign In" button at the top-left corner of the comment box below. You can create a commenting account using your favorite social network such as Twitter, Facebook, Google+, LinkedIn or Open ID - or open a Livefyre account using your email address.



Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day


Asia / Pacific
Middle East / Africa
USA Government

RSS Feeds / Social Media

Combined Econintersect Feed

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution



  Top Economics Site Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2016 Econintersect LLC - all rights reserved