When Apple announced its quarterly results in January, no one had ever seen a company bring in this much revenue in a three month period, ever. But hidden below all the 11-figure numbers for iPhone sales were the stats about iTunes. Yes, there was growth year-over-year ($2.6 billion vs $2.4 billion), but that increase has more to do with the sales of apps than music.
In fact, iTunes saw a 7% decline in net sales of digital media. This is in line with a steady fall in the number of digital tracks being sold. According to the RIAA, digital singles revenue fell 11% in 2014 while digital albums dropped 14%.What’s the cause of this? Streaming. No wonder Apple bought Beats. The question is, when are they going to relaunch the product? And how will it compete with Spotify and Rdio? Stay tuned.