Apple Considering Dramatic Overhaul of iTunes to Address Declining Music Downloads

Discussion in ' News Discussion' started by MacRumors, Apr 9, 2014.

  1. macrumors bot


    Apr 12, 2001

    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.

    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.
    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
  2. macrumors 6502

    May 3, 2011
    Upper Midwest
    Apple has certainly let the music world zoom past them in terms of subscription services.
  3. macrumors 603


    Apr 11, 2005
    One mile up and soaring
    Maybe they need to reach out to today's artists and get them to make some better music. :cool:
  4. macrumors member


    Mar 27, 2010
    San Diego, CA
    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.
  5. macrumors 604

    Sep 23, 2003
    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?
  6. macrumors 6502a

    Feb 9, 2010
    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.
  7. macrumors 604


    Mar 26, 2008
    including "on-demand" streaming to the iTunes Match subscription would be neat :D until then ... spotify it is. my iTunes usage has declined a lot since ive discovered Spotify
  8. macrumors 6502


    Jul 1, 2010
    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.
  9. macrumors 68000


    Aug 25, 2007
    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.
  10. macrumors 6502a


    Jun 9, 2009
  11. Guest


    Jan 22, 2014
    Earth's Core
    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... :apple:
  12. macrumors regular


    Sep 24, 2012
    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.
  13. macrumors 68020


    Jul 21, 2004
  14. Moderator


    Staff Member

    Sep 8, 2010
    Detroit, Michigan
    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.
  15. macrumors newbie

    Feb 12, 2012
    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.
  16. macrumors regular

    Mar 24, 2005
    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.
  17. macrumors newbie

    Apr 13, 2011
    "Why aren't people buying this music they are currently listening to for free?"

  18. macrumors newbie

    Apr 6, 2014
    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.
  19. macrumors 6502a


    Oct 19, 2012
  20. macrumors newbie

    Feb 12, 2013

    If only we/they could spot(ify) the reason why this is occurring...
  21. macrumors regular

    Mar 15, 2009
    As long as Bittorrent is alive and well itunes will suffer.
  22. macrumors 65816


    Dec 5, 2012
    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!
  23. macrumors 68040

    May 29, 2003
    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.
  24. macrumors 6502


    Jun 14, 2013
    Wolverhampton GB
    iTunes Radio usage would increase if they brought it to more countries! Still waiting here in the UK...
  25. macrumors 603


    Aug 23, 2012
    McKinney, TX
    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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