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Is iTunes Slowly Dying?
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Baninated
Join Date: Sep 2005
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Clinically Insane
Join Date: Jun 2001
Location: planning a comeback !
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Addicted to MacNN
Join Date: Aug 2006
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The stock hasn't gone down, so it looks like no one believes them.
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Clinically Insane
Join Date: Oct 2001
Location: San Diego, CA, USA
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According to Engadget, the study was based on 2,000-ish credit card transactions. I reckon that's, like, a couple of hours' business for Apple.
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Chuck
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"Instead of either 'multi-talented' or 'multitalented' use 'bisexual'."
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Posting Junkie
Join Date: Mar 2001
Location: Salamanca, España
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iTunes is just an app. It may be shoddy-ish carbon, but it isn't dying. The iTM is not dying either. The expansion possibilities for it are still immense, because of video and movies.
The iPod is still king and that's where the real money is made anyway.
V
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I could take Sean Connery in a fight... I could definitely take him.
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Clinically Insane
Join Date: Oct 2000
Location: Los Angeles
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Perhaps sales are slackening because pop music stinks. No, wait, that's been true for quite some time.
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"The natural progress of things is for liberty to yield and government to gain ground." TJ
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Posting Junkie
Join Date: Jun 2001
Location: Baltimore, MD
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I saw an article by another analyst who said that in fact the exact opposite is true and the only reason it looks like the iTunes music purchases are declining is because the original analyst failed to take into account the fact that not all iPod purchases are new customers, some are people replacing their old/broken iPods. So the growth of iTunes music sales is not going to exactly mirror the growth of iPods.
I'll see if I can find the link again.
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Professional Poster
Join Date: Sep 2002
Location: New York, NY
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Vandelay Industries
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Moderator
Join Date: Feb 2006
Location: on the verge of insanity
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I agree. Once began, everything slowly dies. Some things die faster than others.
iTMS is doing fine and will until something better comes along.
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I like my water with hops, malt, hops, yeast, and hops.
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Posting Junkie
Join Date: Jun 2001
Location: Baltimore, MD
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Originally Posted by Art Vandelay
Different article, but that's the same report I was talking about.
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Professional Poster
Join Date: Sep 2002
Location: New York, NY
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Forrester's analysis seems deeply flawed to me. How can you determine the sales rate by looking at only a few thousand credit card transactions. iTMS was at a billion songs per year run rate when they hit 1 billion downloads earlier this year according to Apple. Also, it seems they forgot that credit cards are not the only way to purchase at iTMS. Gift cards are a big item around the holidays for the iTMS. Even if credit card transactions were declining, it's entirely possible that gift cards could offset that.
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Vandelay Industries
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Grizzled Veteran
Join Date: Feb 2003
Location: UK
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tin pot, garden shed
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