Are Streaming Services Killing Apple’s iTunes Business?

Los Angeles Times is reporting that Apple is currently in talks with major record companies to offer new releases exclusively through its iTunes Store. Quoting people familiar with the matter, the report said Apple wants labels to create a period reserved for digital purchasing –  similar to the one that some Hollywood studios impose for films newly released for home viewing.

According to the report, music industry analyst Mark Mulligan believes streaming services may be luring away Apple’s most devoted music customers.

“It’s not that streaming is replacing downloads in a larger sense,” Mulligan said. “What it is doing is going right after the spending of some of the most valuable download customers there are — and Apple’s most valuable download customer.”

Apple recently had some success in this area when Beyonce’s fifth studio album in December, was released exclusively through iTunes. It became the fastest-selling album ever in the iTune store.

In a press release, the company said:

“BEYONCÉ has become the fastest selling album ever on the iTunes Store worldwide with an unprecedented 828,773 albums sold in just its first three days. BEYONCÉ also broke the US first week album sales record with 617,213 sold and proved to be a global success going to number one in 104 countries.”

LA Times

Posted by | Posted at March 11, 2014 09:50 |
Storm is a technology enthusiast, who resides in the UK. He enjoys reading and writing about technology.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Related Posts

According to a New Report, Apple to Release iPhone with Out Notch in 2021

January 1, 2020
According to the latest report, Apple is planning to release...

Apple Announces iPhone Xs, iPhone Xs Max and iPhone Xr

September 12, 2018
Apple iPhone Xs and iPhone Xs Max  features: 5.8" and...