iTunes Downloads Will Drop Almost 40% Over Next Five Years
September 5, 2014 at 12:08 PM (PT)
APPLE's iTUNES, which has dominated retail sales over the last decade, are headed for a drop, according to a report in today's DIGITAL MUSIC NEWS.
Last year marked the first time that iTUNES downloads showed a decline, but it's a sign of things to come, according to MIDiA RESEARCH, which predicts they will drop a total of 39% over the next five years, with streaming aggressively cutting into marketshare.
“Streaming has driven new market growth in countries such as SWEDEN, but in larger markets such as the U.S. it is denting digital music buying,” according to MIDiA founder MARK MULLIGAN.
“The first wave of subscribers was harvested directly from the most valuable download buyers, denting download sales in the process," he is quoted in the DIGITAL MUSIC NEWS report. "23% of music streamers used to buy more than one album a month but no longer do so.”
Streaming will eventually overtake all recordings. “Download sales are affected most and will continue to feel the pinch with 45% of all music downloaders also music streamers,” added MULLIGAN. “Thus, although streaming and subscriptions will grow by 238% on 2013 levels to reach $8 billion in 2019, download revenue will decline by 39% – only 5% less than the rate at which CD revenues will fall – leaving streaming and subscriptions representing 70% of all digital revenue.”
Welcome to the future, folks.