Apple confirms decline in iTunes music sales in new SEC filing
Apple has confirmed that the iTunes Store has suffered a decline in sales of digital music.
As noted by Venture Beat, the confirmation comes by way of a report filed by the company with the U.S. Securities and Exchange Commission (SEC) regarding its just ended fiscal year:
The iTunes Store generated a total of $10.2 billion in net sales during 2014 compared to $9.3 billion during 2013. Growth in net sales from the iTunes Store was driven by increases in revenue from app sales reflecting continued growth in the installed base of iOS devices and the expanded offerings of iOS Apps and related in-App purchases. This was partially offset by a decline in sales of digital music.
Indeed, during Apple’s Q4 FY2014 financial results conference call last week, CEO Tim Cook said that App Store revenue saw a year-on-year increase of 36 percent, with the App Store having topped 85 billion downloads.
But while apps continue to be lucrative for Apple, music downloads are going the other way.
The downtrend was first reported last week by The Wall Street Journal, which said that iTunes music sales had fallen 13 to 14 percent since the beginning of 2014.
Unsurprisingly, while music downloads are declining, music streaming through the likes of Spotify, Rdio, and Pandora is on the rise. Perhaps it’s why Apple spent $3 billion to acquire Beats, whose Beats Music streaming service has been rumored to be relaunched, repriced, and integrated into iTunes next year.
