A new report from The Wall Street Journal reveals that iTunes music sales have fallen by 13 to 14 percent worldwide this year, citing people familiar with the matter. This is in stark contrast to only a 2.1 percent overall dip last year in global revenue from music downloads – a decline that was said to be offset by increases from ad-supported and subscription services. As previously reported, Apple has been working to cut music subscription prices and has plans to rebuild its recently-acquired Beats Music and relaunch it next year as an iTunes service, according to a person familiar with the matter.
Despite the drop, Apple remains the largest seller of music in the world, both physical and digital, and according to music executives, its dominance over other digital music stores is “especially pronounced.” Although overall music sales were mostly steady last year due to physical CD sales, some record company executives are reportedly concerned that the music industry could fall into decline if download sales drop more quickly than streaming service growth accelerates. Notably, executives are working to persuade users of online music services to pay a monthly subscription fee, rather than using free ad-supported services which are said to generate considerably less revenue for the music labels. According to the RIAA, streaming services now account for nearly one-third of the revenue from recorded music in the U.S.
Notably, Apple reported a healthy increase in overall iTunes sales this quarter, which includes other types of content such as apps, movies, and books, although the company does not break out sales by individual content type.
A new report from Re/code reveals that Apple is working to get the price of its subscription music services down to as low as $5/month. Apple was reportedly asking the labels to cut prices to pave the way for a cheaper Beats music subscription, and is suggesting that top iTunes buyers spend about $60/year on music downloads, which equates to about $5/month. On a $5/month subscription model, the music labels would therefore not lose any revenue as a result of those download buyers switching over to a streaming model, and would in fact potentially gain more revenue in the form of new subscribers who may not otherwise spend as much on downloads. The Re/code report also notes that Spotify has just made changes to its streaming plan, offering a “family plan” price of $5/month for additional accounts beyond the first account, suggesting that some room exists in the label agreements for lowering pricing. It’s also worth noting that competing streaming service Rdio has been offering a similar “family plan” for about two years now.
Oddly released without any fanfare in beta form to developers back in July, iTunes 12 has officially debuted at Apple’s media event today. As noted in our What’s New in iTunes 12 article, the Mac and PC application has received a “flatter” cosmetic overhaul inspired by iOS 7 and iOS 8. It largely does away with the traditional sidebar found in earlier versions of iTunes — a feature that was hidden but still present in iTunes 11 — to embrace a more media library-heavy interface. Various types of media are now individually browsed and managed using icons at the upper left of the iTunes window, with separate iTunes Store access points for each medium.
iTunes 12 has been announced for OS X Yosemite, but not yet for older versions of OS X or Windows PCs. Updated: It is now available for download for OS X 10.7.5 and newer through iTunes.com, as well as for Windows XP and newer.
A recent U2 interview posted on Facebook saw the band members taking questions from fans, and one of the questions concerned the automatic free download of U2’s Songs of Innocence album to iTunes playlists: “Can you please never release an album on iTunes that automatically downloads to peoples [sic] playlists ever again? It’s really rude.” The album was accessible for free to 500 million iTunes customers; early estimates claimed 33 million users accessed the album.
The question was posed to U2 frontman Bono, who answered, “Oops. Um. I’m sorry about that. I had this beautiful idea and we got carried away with ourselves. Artists are prone to that kind of thing. Drop of megalomania, touch of generosity, dash of self-promotion, and deep fear that these songs that we poured our life into over the last few years mightn’t be heard. There’s a lot of noise out there. I guess we — we got a little noisy ourselves to get through it.”
Apple has released a new beta for iTunes 12. We took an in-depth look at the first iTunes 12 beta in late July, and we’ll update this story with changes found in the new edition. The latest beta includes a few more cosmetic changes, such as simplifying certain Preferences screens, adding media categories with keyboard shortcuts to the View menu, and improving support for viewing sync settings when multiple iOS devices or iPods are connected.
Last week, Apple and U2 teamed up to release the band’s newest album — Songs of Innocence — for free on iTunes. A new article from Time claims that the company and band are also teaming up on a “secret project” to boost digital music sales. According to the article, Bono “hopes that a new digital music format in the works will prove so irresistibly exciting to music fans that it will tempt them again into buying music — whole albums as well as individual tracks.” Details are very sparse, but it’s highly possible that this new project could involve a long-rumored higher-bitrate iTunes audio format, and/or the inclusion of iTunes Extras for albums, as Apple currently does with HD videos.
Apple has announced that 33 million iTunes account holders have accessed U2’s Songs of Innocence album for free. That figure includes customers who downloaded the album, streamed it, or listened to it using iTunes’ radio player. A report notes that Apple SVP Eddy Cue “called the number record-breaking, but did not elaborate.” For those uninterested in the latest effort from U2, Apple has released a guide on how to remove the album from your iTunes music library. [via Associated Press]
The iTunes Festival channel has reappeared on Apple TV, not long before the festival kicks off in London. Apple’s iTunes Festival starts September 1 and runs through the whole month. As has been the case previously, the channel will let users watch live HD streaming video of the performances, as well as on-demand recordings after performances have ended. New acts, including Mary J. Blige, deadmau5, and Ed Sheeran, were recently added to the schedule. Currently, only two days of the festival have acts yet to be announced, as the schedule is mostly set.
Apple has released a new beta for iTunes 12. We took an in-depth look at the first iTunes 12 beta in late July, and we’ll update this story with changes found in the new edition. The latest beta includes a few more cosmetic changes, such as redesigned media section icons and a new “Recently Added” section in areas such as Movies and TV Shows.
Apple is honoring Robin Williams on its website and in its iTunes Store following the recent death of the actor and comedian. A new “Remembering Robin Williams” webpage has been posted on Apple’s official website — a rare occurrence. Additionally, the iTunes Store now has its own “Remembering Robin Williams” section. The section gathers many of Williams’ movies in one place, in addition to the first season of his recent TV show, The Crazy Ones, and a few of his comedy albums.
Apple has released iTunes 11.3.1, a minor update that fixes a few podcast bugs — one problem caused podcast subscriptions to stop updating with new episodes, and another issue caused iTunes to become unresponsive while browsing podcast episodes. Users can get the update through Software Update in the Mac App Store or at Apple’s iTunes download page.
Alongside the latest OS X Yosemite beta preview, Apple has issued the first beta of iTunes 12. This represents the first time the app has been seen at all, although a new red icon was visible in the dock during Apple’s Yosemite presentation at WWDC. iTunes 12.0 includes a new “streamlined,” iOS 7/8-style design, Family Sharing, improved playlists, and a redesigned info window. The app has shifted to using black and white iOS-influenced iconography, and lets you view device media and other content (“Apps,” “Music,” “Photos”) in vertical lists rather than with horizontal tabs.
The app is available to registered developers through the Mac App Store.
Apple has announced the eighth annual iTunes Festival, a concert series held in London at the Roundhouse. There will be 30 days of concerts throughout September, which will be broadcast live to an iOS app, iTunes on the desktop, and Apple TV. This year’s artists include Maroon 5, Pharrell Williams, Beck, and Blondie. Apple held its first ever U.S. edition of the iTunes Festival at SXSW in March. More information is available on iTunes.
After launching in Japan on Tuesday, Apple’s new iTunes Pass credit system has been rolled out in the United States, as well as Canada, Germany, and the United Kingdom. The system allows iTunes customers to refill their iTunes Store balance by having an Apple Store Specialist scan a QR code on a pass in Passbook; once payment is issued, the credit is automatically applied. To add iTunes Pass to Passbook, one must open the iTunes Store app on an iPhone or iPod touch, scroll down to the bottom, and then tap Redeem.
Apple has released iTunes 11.3, bringing iTunes Extras for HD movies to the Mac — iTunes Extras has also been added to Apple TV within software update 6.2 for the set-top box. As noted in the release, “iTunes Extras can include behind-the-scenes videos, short films, high-resolution image galleries, director’s commentary, scenes, and more.” iTunes Extras will also be brought to the iPhone, iPad, and iPod touch with iOS 8 in the fall. Previously purchased HD content will automatically gain the iTunes Extras content with any additional purchases necessary.
Update: With the update, Apple is changing the way it treats HD video files, as one download now contains all extras, and some movies start by showing users a screen more akin to a DVD menu. A consistent Extras UI works across iTunes, iOS, and Apple TV, sometimes including even more content than was previously available. The Bourne Legacy, for instance, adds 5 additional featurettes to the two originally included. Photos are included after the jump.
Apple is looking to take advantage of Amazon’s ongoing dispute with Hachette Book Group — or at least ruffle Amazon’s feathers — by promoting discounted Hachette books in its iTunes Store. Currently, Apple is promoting 26 books under the heading “Popular Pre-Orders: $9.99 or Less,” and all of the books are from Hachette. Re/Code confirmed the promotion with Apple, but pricing arrangements were not disclosed. Amazon and Hachette couldn’t reach an agreement during contact negotiations and have been at odds ever since, with Amazon stating it is “buying less (print) inventory and ‘safety stock’ ” from Hachette.
ESPN Radio and a number of local NPR stations are now available on iTunes Radio. The stations are notably live streaming stations, rather than customizable iTunes Radio stations.
NPR launched its first iTunes Radio station, NPR News and Culture, in March. A search for “NPR” within iTunes Radio today turned up 41 local stations, though there may be more available. [via Apple Insider]
The development of Apple’s iTunes Radio and Ping suffered from shortsighted management, and Apple engineers often preferred to use Spotify and Pandora, according to a new report from Buzzfeed, which interviewed both former and current Apple employees. “Pandora is an awesome radio that blows iTunes Radio out of the water. Seriously, iTunes Radio sucks and it sucks because of Apple’s arrogance,” a former mid-level Apple employee said. “I was floored by the decision-making skills by management over and over again.” It’s reported that management ignored iTunes’ biggest streaming competitors, “with some managers refusing to open or use Spotify,” and some not even understanding what Spotify did. “They didn’t understand how Spotify worked, which is why they thought iTunes Radio would be a Spotify killer,” a source said.
Employees also said Apple “didn’t seem to have an interest in how the song collections created by iTunes Radio sounded, or whether they were cohesive.” iTunes Radio users have reported hearing the same songs too often, or hearing songs that don’t fit into certain stations. Buzzfeed speculates that a major reason for the Beats acquisition was due to Apple’s problems in tackling streaming music on its own.
Apple has released the second update to its iTunes 11.2 software. Version number 11.2.2 “fixes a problem where certain podcast episodes may download unexpectedly.” Podcast enhancements were among the biggest components when iTunes 11.2 was released 13 days ago.
Apple has released iTunes 11.2, which boasts improved podcast browsing. Users can now quickly find unplayed podcast episodes, browse episodes available to download or stream in the Feed tab, save episodes to a computer, and choose to automatically delete already-played episodes. A fix is also included for an issue that made iTunes unresponsive while updating Genius. The update can be downloaded at iTunes.com or through the Mac App Store.