Even as consumers buy more and more iPods, they are purchasing only a handful of songs from Apple Computer Inc.'s iTunes online store, a Forrester Research report said.

In a study of the online store, technology research company Forrester estimated that its monthly revenue, after rising for the past two years, has fallen 65 percent since January, when sales spiked most likely because people who received iPods for the holidays began filling them up with music.
 

Forrester concluded that most households buy less than two CDs worth of iTunes music. And in adding up all the songs sold on iTunes -- about 1.5 billion -- and all the iPods sold -- about 60 million to 70 million to date -- it breaks down to about 20 iTunes tracks sold per iPod, Forrester said. In recent months, that has increased to 23 songs per iPod.

View: Full Story (San Franciso Chronicle) 

Update.....

iTunes sales are NOT plummeting! Press credibility, on the other hand . . .

'A UK outfit called The Register and Bloomberg decided to dive in and highlight one finding of the report -- that iTunes sales had dropped in the first six months of this year. We got treated to wonderful headlines about iTunes sales "collapsing" and "dropping" and "plummeting" and so on. Now for the record, iTunes sales are not collapsing. Our credit card transaction data shows a real drop between the January post-holiday peak and the rest of the year, but with the number of transactions we counted it's simply not possible to draw this conclusion . . . as we pointed out in the report. But that point was just too subtle to get into these articles.'

'Now, you can't unring the bell. But I will try to focus you on the truth here, which is this: iTunes sales are leveling off, the Journal did an article about it last Friday with data from Soundscan. Apple is not in trouble -- it makes its money mostly from iPods, and iTunes is just a way to make that experience better. It's the music industry that has to worry, since the $1 billion a year or so from iTunes, globally, doesn't nearly make up for even the drop in CD sales in the US, which are now down $2.5 billion from where they were.'

View:  Forrester  (Thanks to Tim for the Update)

Comments

Add New Search RSS

jamie (Super Administrator) 2006-12-14 11:49:32 20 iTunes tracks per iPod is still kind of impressive I think Thought it'd be more like 5. Could also be related to the fact that lots of new sources have popped up for purchasing music online recently. Reply | Quote

Name:
Title:
UBBCode:	-color-aquablackbluefuchsiagraygreenlimemaroonnavyolivepurpleredsilvertealwhiteyellow -size-tinysmallmediumlargehuge

Powered by JoomlaCommentCopyright (C) 2006 Frantisek Hliva. All rights reserved.Homepage: http://cavo.co.nr/