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iTunes accounting for 1/4 of all U.S. music sales

Overall, music sales fell by more than a billion dollars last year, but Apple's iTunes is doing better than ever. The digital music distribution service claimed more money than ever, and now represents the biggest U.S. market for music sales, making up over a quarter of total music sales in this country. Unfortunately, not even iTunes may save the industry; total music sales in the US only rose by 1.1 percent over the previous year (which, according to industry analysts, is as good as not growing at all), and the total worldwide market decreased to $17 billion. That's nothing to sneeze at, but the fact is that, even if more people are buying music through iTunes, less music is being sold. The way the trends are going, it looks like actual music sales themselves may start dropping off, even in the United States.

So what's the solution? The record industry is actually looking to iTunes now to save their own business. One executive is quoted as saying that an iTunes subscription service might be just the thing to get people interested in buying music again (or at least renting it). It would appear that, with the purchase of Lala, Apple may be laying the groundwork for a service like that.

However, there are a lot of other factors going into this market change (not the least of which is that it's easier than ever to make, buy, sell, and share music outside of the record industry system, which includes iTunes), and even a subscription service won't solve the problem.

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iTunes

Overall, music sales fell by more than a billion dollars last year, but Apple's iTunes is doing better than ever. The digital music...
 

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Aaron

Streaming could be cool. But I think if Itunes really wants to attract everyone they need to offer mp3's. It sucks if I pay for a song just to have to transcode to an mp3 to use on a different player. At that point your are left with a overly compressed piece of garbage. Right now I purchase from amazon. But if Itunes would ever offer mp3, they would get all of my business. Purchasing on Itunes is very nice and convenient. Whenever, if ever Itunes goes the mp3 route, I don't think shopping at Amazon will even be an option anymore.

April 30 2010 at 1:16 PM Report abuse rate up rate down Reply
Desmond Pickard

I would buy more songs if they where still 99 cents.

April 29 2010 at 4:59 PM Report abuse rate up rate down Reply
oopscdaz

I tend to agree with the previous post. For years before Itunes et al we HAD to buy a whole album whether it be analog or digital. This is pay back time more or less as the music companies are just going to have to do with less revenues. What goes around comes around.

April 29 2010 at 4:45 PM Report abuse rate up rate down Reply
JustinX

My favorite argument is that iTunes is killing the album- uh, NO- I just don't have to spend $15 because I want 1 song. The industry jacked us for years, and now we (consumers) get to choose and select exactly what we want. All that filler music we were paying for is no longer being bought, of course their revenue is down!

April 29 2010 at 1:29 PM Report abuse rate up rate down Reply
Michael Bushnell

Note to music industry CEOs: Make music that doesn't suck and your revenue will increase.

April 29 2010 at 12:54 PM Report abuse rate up rate down Reply
grandpag

If the music industry would put out decent music again, they may have something to sell.

April 29 2010 at 12:39 PM Report abuse rate up rate down Reply
toreil

If there would be any talented people in the pop industry these days they might actually sell some more records. Grmph, that sentence just made me feel old

April 29 2010 at 12:38 PM Report abuse rate up rate down Reply
1 reply to toreil's comment
evo

I graduated in 99, then returned to school in 06 and finished last May. The interesting thing is that about half of the favorite music of the students are bands that were popular about the time I graduated the first time. So it is not just you being older

April 29 2010 at 1:06 PM Report abuse rate up rate down Reply
Craig

I'd be fine with a subscription service. It would probably encourage me to download more from iTunes than I already do. The only catch would be if the music was "rented". No way I'm paying a subscription fee for music that could become useless!

April 29 2010 at 12:34 PM Report abuse rate up rate down Reply
1 reply to Craig's comment
Harrison

I'm pretty sure all subscription services are with rented music.

April 29 2010 at 2:14 PM Report abuse rate up rate down Reply
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