Apple’s 10-Year-Old iTunes Loses Ground to Streaming
Ten years after iTunes made digital music purchases mainstream, Apple is losing its share in the digital music market. Its market share has fallen to 63%, which is its lowest point since 2006. It continues to sell most songs for 99 cents each, but consumers are showing preference for subscription-based music markets. Some companies, like Amazon.com, which has seized 22% of U.S. music sales in the past several years, are even beginning to offer music for prices cheaper than Apple’s. Apple has focused less on its music market, which was once known for giving undiscovered artists a chance at fame, and more on TV shows, movies, and books sold on iTunes.
Apple is looking at ways to improve iTunes, such as subscription plans and music streaming. Since iTunes already has 435 million customers, all Apple should have to do is match competitors. It is a trusted company with satisfied customers, so retaining business shouldn’t be too difficult for the company that is already responsible for so much innovation.
Written by: Constantine Kostikas