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“iTunes Sales Continue to Fall”

Author's pic

By Dennis Lloyd

Publisher, iLounge
Published: Monday, August 4, 2003
News Categories: iTunes

“In the first day April 28th iTunes sales were at 200,000 per day. By May 5th CNet were reporting that sales had topped 1,000,000 meaning 140,000 songs were been sold per day. By May 14th this figure had fallen to 125,000. While figures published in the The NY Times on May 28th translate the figure into 100,000 per day.

The decline continued from there. 5 million tracks had been sold by June 23rd meaning the average daily sales had now hit 89,000. The figure hit 6.5 million on July 22nd translating into 52,000 sales per day.

The sales figure may reflect seasonal variance and other launch hype related factors. However there is a clear decline in place and with iTunes still failing to sign up some big bands the perceived success of iTunes is not quite what all are making it out to be.”

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Comments

1

price go down, sales go up…maybe.

Itunes for windows would also help.

Posted by tetro on August 4, 2003 at 10:49 PM (PDT)

2

yep windows would at least quadruple sales

Posted by ti on August 5, 2003 at 1:16 AM (PDT)

3

and also its only in the US.
different countries are slightly different in styles of the main pop music.

Posted by XiXora on August 5, 2003 at 2:26 AM (PDT)

4

listen apple are still making money even on these sales, when they launch windows itunes, things should go through the roof.

we in europe need to access to it and also more variety, some non mainstream acts in the mix please.

Posted by mac_gladdy on August 5, 2003 at 2:57 AM (PDT)

5

what kind of selections do they have ? I am particulary interested in Baby got back..

mp3.com has some interesting free mp3s from indie/non mainstream artists

Posted by bababooey on August 5, 2003 at 3:44 AM (PDT)

6

When iTunes comes to Canada in September it will jump back up.  The problem now is most of those intial buyers have bought the tracks they wanted.  Now we are looking more towards new artist sales (IMHO).  When iTunes goes world wide, then Windows wide things will change again for the better.

Mike

Posted by vanillamike on August 5, 2003 at 4:57 AM (PDT)

7

perhaps people are finally figuring out that they have been paying CD-quality prices for sub-CD-quality music…

it never made any sense to me…

Posted by IDSmoker on August 5, 2003 at 5:02 AM (PDT)

8

Not that I really care one way or another if iTunes succeeds, but this is a prime example of lying with statistics.  Just about any highly-anticipated product experiences high sales after launch which slowly declines as pent-up demand is met.  This is true of new cars, new movies, new stock (IPOs), new albums, and of course iTunes.  To take this microeconomic reality and twist it into some sort of “proof” that iTunes is doing badly, is really poor journalism.

Posted by tonicboy on August 5, 2003 at 5:19 AM (PDT)

9

I would be buying so much more music, if it was on the ITMS.  They just don’t carry a lot of what I want.  I like more obscure, indie, jam, and jazz fusion types of music.  I can’t find a lot, and not to mention, they don’t even carry Radiohead, Grateful Dead, Widespread, and much more.  It’d be nice to buy digital music, if they ever add it.

Posted by Jordan on August 5, 2003 at 5:38 AM (PDT)

10

The december launch of iTunes for windows may not be as expected, being as how Napster is coming out around the same time

Posted by zeve on August 5, 2003 at 6:50 AM (PDT)

11

Ummm… duh?  Of course everyone is going to want to buy all the songs they definitely want right away.  Then demand will taper off and people will get into a more regular stream of a certain number of new songs per week.  It’s natural that there is a peak right when the service came out.  Back when CDs first came out, there was a huge rush as everyone replaced their cassettes and vinyl.  Now sales have naturally tapered off as the replacement phase is over. 

However, the windows iTunes will pump the sales up again.  Personally, I’d love a more platform-independent front-end to the iTunes store as I have my iPod hooked up to my Linux box (gtkpod).

Posted by msherman on August 5, 2003 at 7:58 AM (PDT)

12

wow, so, you mean, the initial sales were inflated by people using a legal download service for the first time? 

c’mon people.  this service was the first of it’s kind—the initial numbers were high because lots of people were trying it out.  The sales will plateau somewhere until large quantities of new tracks are added or a new market segment is tapped (i.e. windows).  Mac users are still a relatively small US market segment, and they’re gonna use up their interest in the existing tracks available pretty quickly.  To be successful iTMS needs to continue to add new and interesting music to the catalog and sweet god do they need to make the service available to the other 97% of computer users.

Posted by k on August 5, 2003 at 8:02 AM (PDT)

13

I don’t think anyone in their right mind expected the rate of downloads to hold - at least until they would expand the offering or get Windows users on board.  What they really need to do is dramatically increase the available songs and, more importantly, finally get the indie lables and more obscure stuff on there.  This is the reason my downloads dropped off.  After about 20 or so downloads, I just didn’t see anything I wanted.  I keep looking, but the artists/music I like isn’t there yet.  I like the service - it can be addicting.  Once they have the songs I want, I’ll be a much more frequent visitor.  I also think they need to add more unique tracks - demos, b-sides, live stuff, ect.  Independant labels and alternative artists may have a narrower audience, but many times that audience is more loyal and are more gluttonous collectors than those that may listen to mainstream stuff.  To make money and survive, lesser known artists have to be more prolific.  This is why this type of delivery system is perfect for them - throw out as much stuff as you can and people will buy it - and at hardly any incremental cost to them, the artist. Give us your demos, your soundboard boots, your unreleased gems - I’ll donwload them for $.99.

Posted by Alien Hand on August 5, 2003 at 1:10 PM (PDT)

14

Wait til Xmas.

Posted by Albert on August 5, 2003 at 2:44 PM (PDT)

15

That Slyck site is specifically dedicated to file sharing (Read: piracy). Check out the comments! Loaded with ignorant misinformation about iTunes. (They only have pop music? CDs cost $17 each to download? P2P is easier and more reliable than iTunes?) And you’ll find a strong slant towards stealing music as the only way to live.

Posted by Nagromme on August 5, 2003 at 10:44 PM (PDT)

16

Also note that independent labels are only JUST now starting to appear on iTunes. That will be a BIG wave of music selection.

Posted by Nagromme on August 5, 2003 at 10:46 PM (PDT)

17

Remember that only Mac OS X users (10.2)can access this service..iTunes 4.0 also..So the amount of users here is small even in the mac community..When more people migrate to OS X and see this service and when the other crowd gets their service iTunes will rock all other services..Apples ease of use and smooth hardware make
itunes a winner..This will help migration of more people..

Posted by wozman on August 6, 2003 at 3:12 PM (PDT)

18

Maybe everyone got their iTunes credit card bills around the same time? Ouch!

Posted by BadCredit on August 6, 2003 at 4:13 PM (PDT)

19

Who would pay money for low quality songs?  It is so sad.  And the service sux.  It won’t survive.

Posted by hyrggr on August 8, 2003 at 9:15 AM (PDT)

20

This will only work if Apple finds a way to work with indie labels without infringing on their ability to own and control the music.  Who ####### cares if I can buy eight different versions of a Britney Spears song?  Most music in the iTMS is mainstream crap.  And the very little amount of stuff is all from decades ago.  Apple may be on the fore front of technology but they don’t realize that the music industry is changing and people don’t want major label doctored bands trying to sell the same old image over and over again.

Posted by enfused on October 5, 2003 at 4:35 PM (PDT)

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