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.
