iTunes Music Sales Are Plummeting
Reuters Apple CEO Tim Cook.
iTunes music sales have fallen 13% since the beginning of the year, The Wall Street Journal's Hannah Karp reports.
The decline in sales is not a surprise for Apple — sales were down 2.1% in 2013 — but the news underscores how consumers have steadily moved away from a-la-carte offerings like iTunes toward streaming services like Pandora and Spotify.
Apple is believed to have purchased Beats Electronics in part because of its streaming service, Beats Music, to integrate a streaming option into iTunes.
Apple is reportedly in talks with record labels to lower the cost of Beats Music, which runs users $9.99/month or $99.99/year.
Last month, Apple denied rumors it would shut down Beats Music, saying instead that a rebrand was likely.
As you can see, iTunes music revenue has been bumpy but essentially flat since 2010. Consumers are much more interested in iTunes for its app offerings.
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