Apple Considering Dramatic Overhaul of iTunes to Address Declining Music Downloads

Apple is considering a dramatic overhaul of its iTunes music store as iTunes Radio has failed to stop declining music downloads, reports Billboard. As reported earlier this year, the company may create an on-demand music streaming service similar to Spotify in order to boost sales as well as an Android iTunes app.

itunes_radio_hero2

"iTunes Radio hasn’t solved the problem of refreshing the iTunes store," said a senior label executive. "While listeners are clicking the buy buttons, the traffic it is driving is in the low single digits of listeners."

Only one to two percent of iTunes Radio listeners go on to buy songs and digital music sales were down some 5.7 percent in 2013, according to a January report. Overall music downloads have been declining upwards of 15 percent while iTunes is also losing money to competitors like YouTube, Spotify, and Pandora.

iTunes still accounts for upwards of 40 percent of U.S. music sales revenue and iTunes Radio is the third largest music streaming service after Pandora and iHeartRadio, but it has not thus far generated the sales that Apple expected.

According to the report, Apple's options for improving iTunes are being debated internally and among the company's content partners as it works to overcome competition from Android and an increasing consumer preference for streaming music services.

Meanwhile, in the U.S., Apple is losing its most valuable customers. "Two-thirds of its high-value customers are now in subscription services," said one source. "That has been an eye-opener for them."

While iTunes Radio allows users to create radio stations based on song selections, an on-demand service similar to Spotify would potentially allow users to select songs at will and could carry a monthly fee. iTunes Radio is available for free and supported by ads, with Apple also making its iTunes Match service available to customers.

With an on-demand subscription service, Apple could supply all music models customers are interested in, offering a la carte downloads via iTunes, free music via iTunes Radio, and a premium on-demand service. According to one music executive, Apple has radical plans for iTunes in store, which could lead to a "completely different" experience in three to five years.

Top Rated Comments

roland.g Avatar
130 months ago
Maybe they need to reach out to today's artists and get them to make some better music. :cool:
Score: 35 Votes (Like | Disagree)
iMerik Avatar
130 months ago
Apple has certainly let the music world zoom past them in terms of subscription services.
Score: 18 Votes (Like | Disagree)
redscull Avatar
130 months ago
Or maybe don't charge $1.29 per song?

I can pay $0.99 for an app that'll entertain me some hours or a $1.29 for a song that's 3 minutes long. It's just not a good deal.
Score: 15 Votes (Like | Disagree)
JesterJJZ Avatar
130 months ago
Maybe the industry should make better music.
Score: 14 Votes (Like | Disagree)
milo Avatar
130 months ago
I don't know why they'd expect streaming to drive sales. The main appeal of streaming is that people can hear the music without having to buy it, why pay when you can get it somewhere (and now somewhere legal) for free?
Score: 14 Votes (Like | Disagree)
jrswizzle Avatar
130 months ago
Maybe they need to reach out to today's artists and get them to make some better music. :cool:

Holy crap, AMEN!

I'm 25, and when I saw a special on the Beatles' 40th anniversary this past year I thought "Good lord....they had the Beatles back in the 60s. We have Justin Bieber."

I swear, I about cried.
Score: 13 Votes (Like | Disagree)

Popular Stories

iPhone 16 Camera Lozenge 2 Perspective Gray

Five Key Upgrades Coming to iPhone 16

Friday March 15, 2024 1:45 pm PDT by
The iPhone is Apple's top-selling product, and it gets an update every year. In 2024, we're expecting the iPhone 16 and iPhone 16 Pro lineup, with an arguably more interesting feature set than we got with the iPhone 15 and iPhone 15 Pro. Subscribe to the MacRumors YouTube channel for more videos. Capture Button All four iPhone 16 models are set to get a whole new button, which will be...
When To Expect New iPads Feature 1

Apple to Announce New iPads on March 26, Rumors Claim

Monday March 18, 2024 4:02 am PDT by
Apple is widely expected to release new iPad Air and OLED iPad Pro models in the next few weeks. According to new rumors coming out of Asia, the company will announce its new iPads on Tuesday, March 26. Chinese leaker Instant Digital on Weibo this morning 日发布%23">claimed that the date will see some sort of announcement from Apple related to new iPads, but stopped short of calling it an...
airpods 3 orange

Two New AirPods 4 Models Expected to Launch in September or October

Sunday March 17, 2024 7:56 am PDT by
Apple suppliers will begin production of two new fourth-generation AirPods models in May, according to Bloomberg's Mark Gurman. Based on this production timeframe, he expects the headphones to be released in September or October. Gurman expects both fourth-generation AirPods models to feature a new design with better fit, improved sound quality, and an updated charging case with a USB-C...
iphone se 4 modified flag edges

iPhone SE 4 Expected to Depreciate Heavily

Tuesday March 12, 2024 9:04 am PDT by
Resale value trends suggest the iPhone SE 4 may not hold its value as well as Apple's flagship models, according to SellCell. According to the report, Apple's iPhone SE models have historically depreciated much more rapidly than the company's more premium offerings. The third-generation iPhone SE, which launched in March 2022, experienced a significant drop in resale value, losing 42.6%...
General iOS 17 Feature Orange Purple

iOS 17.4.1 Update for iPhone is Imminent

Monday March 18, 2024 5:27 am PDT by
iOS 17.4.1 and iPadOS 17.4.1 should be released within the next few days, with a build number of 21E235, according to a source with a proven track record. MacRumors previously reported that Apple was internally testing iOS 17.4.1. As a minor update for the iPhone, it will likely address software bugs and/or security vulnerabilities. It is unclear if the update will include any other changes. ...
iOS 17 Passkey With Apple ACCOUNT Feature

'Apple ID' Expected to Change to 'Apple Account' Starting With iOS 18

Sunday March 17, 2024 7:13 am PDT by
MacRumors was first to report that Apple was planning to rebrand "Apple ID" to "Apple Account" across its software platforms and websites like iCloud.com as early as this year, and now Bloomberg's Mark Gurman has corroborated this change. A mockup of the new Apple Account branding In his Power On newsletter today, Gurman said the new "Apple Account" branding will start to be used later this...
M3 iPad Feature 3

New iPads Likely to Begin Shipping in April

Monday March 18, 2024 9:52 am PDT by
Apple's new iPad Pro models with OLED displays will likely begin shipping to customers in April, according to information shared today by Ross Young, CEO of display industry research firm Display Supply Chain Consultants. Bloomberg's Mark Gurman also said the new iPad Pro models might not ship until "deeper" into April in his Power On newsletter on Sunday:I've repeatedly said that new...