Slumping iTunes sales show why Apple purchased Beats
Sales from Apple iTunes’ stores have taken a significant hit in 2014 declining between 13 and 14% according to CEO, Tim Cook.
In 2013, iTunes sales declined 2.1%
According to recent rumors, Beats Music will relaunch rebranded and integrate into iTunes next year. We’ve heard that Apple is attempting to renegotiate deals to cut the price of its subscription music service to around $5 a month. Beats Music currently costs $9.9 per month or $99 per year.
Decline of Digital Music, Rise of Streaming
Just as digital music has killed the CD, streaming is posing challenges for the Music industry as the model is not as profitable as digital music purchases. None the less streaming has become increasingly important and many users are conducting more of their music listening through services like Spotify, Pandora, or Beats Music.
Apple undoubtedly will at some point reveal a new Beats – iTunes streaming product that will attempt to mitigate some of the losses in iTunes sales.
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