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Old Apr 9, 2014, 03:45 PM   #1
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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.

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"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.
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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.

Article Link: Apple Considering Dramatic Overhaul of iTunes to Address Declining Music Downloads
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Old Apr 9, 2014, 03:47 PM   #2
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Apple has certainly let the music world zoom past them in terms of subscription services.
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Old Apr 9, 2014, 03:48 PM   #3
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Maybe they need to reach out to today's artists and get them to make some better music.
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Old Apr 9, 2014, 03:48 PM   #4
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I thought iTunes Radio was created so I didn't have to buy songs? I've listened to endless amounts of iTunes Radio and only purchased one (maybe two) songs.
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Old Apr 9, 2014, 03:49 PM   #5
milo
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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?
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Old Apr 9, 2014, 03:49 PM   #6
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Originally Posted by iMerik View Post
Apple has certainly let the music world zoom past them in terms of subscription services.
That said, the music subscription services hardly make money at all, whereas Apple is still winning (money-wise) with the old business model.

...And that said, I've paid probably over 100 euros to Spotify and bought maybe 3 songs from Apple. I just find monthly payment for unlimited listening is my thing, like it for so many other people today.

I'd be happy to replace Netflix and Spotify with a combined offering from Apple though.
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Old Apr 9, 2014, 03:49 PM   #7
bushido
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including "on-demand" streaming to the iTunes Match subscription would be neat until then ... spotify it is. my iTunes usage has declined a lot since ive discovered Spotify
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Old Apr 9, 2014, 03:49 PM   #8
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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.
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Old Apr 9, 2014, 03:50 PM   #9
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3-5 years is an eternity in web business. I have all but left Pandora in favor of Google Music and Spotify. Even though i get the non-add supported version of ITunes Radio, i have not found it as friendly as the other two.
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Old Apr 9, 2014, 03:50 PM   #10
BornAgainApple
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Why download when you can stream.
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Old Apr 9, 2014, 03:50 PM   #11
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Ill happily change to Apple's streaming service once they offer Spotify like quality.

It would be even better for me since i have songs on iTunes that are not available on Spotify, and it sucks switching between the two apps all the time.

Maybe Apple should acquire them? Just an idea...
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Old Apr 9, 2014, 03:50 PM   #12
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I don't find this decline surprising at all.

I believe music streaming services, with the convenience and ubiquity they offer, combined with the ever growing presence of cheap (or free) broadband access, combined with the new generation's disinterest in "owning" music will do a lot more "damage" than what we see today.

And that's not necessarily a bad thing.
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Old Apr 9, 2014, 03:52 PM   #13
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Maybe the industry should make better music.
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Old Apr 9, 2014, 03:52 PM   #14
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One thing that iTunes needs is a Shopping Cart. Where I can select songs from various artists, or even TV shows and movies and then when I'm done selecting, purchase them all at once.

I don't like having to buy individual songs across artists or albums one at a time. Once it caused my CC to get blocked because I made several disparate purchases within a few minutes.
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Old Apr 9, 2014, 03:52 PM   #15
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I'll buy more music from iTunes if they start selling ALAC-encoded .m4a files. I can stream AAC quality. If I am going to throw money down for something, I want it to be an improvement over the free stuff.
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Old Apr 9, 2014, 03:52 PM   #16
jakeOSX
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the problem they have is amazon for me. when i can get the actual cd for the same price as the iTunes album (or even within $2) with Auto-rip, so i can listen now, it isn't really a competition.

lower the price. the product is lacking.
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Old Apr 9, 2014, 03:54 PM   #17
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"Why aren't people buying this music they are currently listening to for free?"

Wow.
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Old Apr 9, 2014, 03:54 PM   #18
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Emusic Has Better Pricing

I love the iTunes Store, and buy a lot of movies there. But music-wise, EMusic is a better deal. I could take the same money I give to Emusic and it doesn't go near as far as iTunes.
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Old Apr 9, 2014, 03:55 PM   #19
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Fix the music app, not iTunes.
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Old Apr 9, 2014, 03:58 PM   #20
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Hmmmm

If only we/they could spot(ify) the reason why this is occurring...
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Old Apr 9, 2014, 03:59 PM   #21
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As long as Bittorrent is alive and well itunes will suffer.
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Old Apr 9, 2014, 04:00 PM   #22
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Oh yeah! This is great! Let's make an Android version, a Windows Phone version, and a zune version of iTunes so that nobody even has any reason to get an iPhone anymore!

Gotta love Apple marketing!
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Old Apr 9, 2014, 04:00 PM   #23
wizard
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I've never understood the strong need many have to own music.

Seriously when you can turn a radio on, hook into a streaming service or whatever is new and enjoy fresh content, why buy?

By the way I don't want to dismiss the value of following a favorite artist with owned music. What I'm getting at is the value of owning for general listening. Life is just easier when you tune to your favorite channel.
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Old Apr 9, 2014, 04:03 PM   #24
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iTunes Radio usage would increase if they brought it to more countries! Still waiting here in the UK...
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Old Apr 9, 2014, 04:03 PM   #25
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Originally Posted by roland.g View Post
Maybe they need to reach out to today's artists and get them to make some better music.
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.
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