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iTunes turns 10!

Old 04-26-13, 12:40 PM
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iTunes turns 10!

Feel old now?

Long read but some interesting numbers. Despite Amazon and Google, Itunes still dominates at 63%.

When itunes came out, I bought a bunch of stuff, it was much better than Rapsody and far better than the horrible drm'd wmas. But now, I just listen to music on Youtube and Spotify. I think it is just part of the trend of "devaluing media" like with streaming videos but it seems to be becoming a stable source of revenue.
A decade of iTunes singles killed the music industry
By Adrian Covert @CNNMoneyTech April 25, 2013: 6:09 PM ET

NEW YORK (CNNMoney)
Believe it or not, Apple's iTunes Music Store turns 10 this weekend. Although iTunes has in many ways been a godsend to fans of digital music, it has been a source of endless frustration for the music industry.

Since the introduction the iTunes Music Store on April 28, 2003, music sales have plummeted in the United States -- from $11.8 billion in 2003 to $7.1 billion last year, according to the Recording Industry Association of America. When adjusted for inflation, revenue has been more than halved since Apple (AAPL, Fortune 500) launched the iTunes Music Store.

Interestingly, during that same time, people have been buying more music than ever. How is that possible? It's because the iTunes Music Store popularized the cheap digital single.

After manhandling the major record labels during a series of now-legendary negotiations, then-Apple CEO Steve Jobs was able to initially offer digital albums for $10 and any individual track off that album for 99 cents.

That changed the music industry forever. When music sales reached their peak in 2000, Americans bought 943 million CD albums, and digital sales weren't even a blip on the radar. By 2007, however, those inexpensive digital singles overtook CDs -- by a wide margin -- generating 819 million sales to just 500 million for the CD.

Last year, there were 1.4 billion digital singles sold, dwarfing CD sales by a factor of 7. More than three-quarters of all music-related transactions were digital singles last year, according to the RIAA.

Apple's iTunes is behind that sea change. According to NPD estimates, iTunes is currently responsible for 63% of all digital music sales. Even after the emergence of competition from Amazon and Google.

The popularity and ease of downloading cheap digital singles has transformed the industry. Not since the vinyl era has the single been this popular. The smaller, cheaper "45" record dominated music in the 1950s and '60s, but the music industry wised up in the '70s.

Vinyl, cassette and CD singles were always cheaper for consumers, but manufacturing costs were not. Nor was the space required to house them in stores. Thus, the single became harder and harder to come by.

The reality is if singles were as available a decade ago as they are now, they would have been just as popular. Music nerds notwithstanding, the average music listener has really only cared about a few tracks off an album at most.

So how was it that the iTunes Music Store, with its proprietary file format and limited device support, that led this charge?

By the time the iTunes Music Store arrived, the iPod was well on its way to becoming a run away success, which meant that Apple already had an installed base of customers using iTunes.

Competitors, such as Rhapsody, were mostly concerned with streaming music. Most crucially, their files weren't designed for use on the iPod, let alone most other MP3 players.

Without the iPod, iTunes and its music store were seemingly innocuous. But the magical combination of buying a song instantly and taking it with you anywhere gave music lovers a good reason to ditch the CD.

Can music sales ever come back? Likely not, says NPD analyst Russ Crupnick. He believes musicians will have to increasingly rely on touring, merchandise sales and endorsement deals to make up for lost album sales.

The subscription streaming services of Spotify and other music apps could help bolster the business, Crupnick says, but the thought of those bringing the industry back to its former peak seems lofty.

Ironically, it could be Apple that is in danger of losing its grip on the music business. Whether or not Apple can maintain its relevance in digital music could very well depend on its ability to transition to the streaming subscription model, which is rapidly adding users.

Nevertheless, the iTunes Music Store's effect on the way people buy music over the past 10 years has ensured that the music industry will never again be the same. To top of page

First Published: April 25, 2013: 5:22 PM ET
http://money.cnn.com/2013/04/25/tech...Top+Stories%29

Last edited by Ranger; 04-26-13 at 12:45 PM.
Old 04-26-13, 02:17 PM
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Re: iTunes turns 10!

I think I've bought maybe two full albums off of iTunes in 10 years. I hate that program, but because I have Apple everything I have to use it.
Old 04-26-13, 02:36 PM
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Re: iTunes turns 10!

Maybe iTunes is partially to blame for plummeting revenue, but the #1 factor is the one that keeps getting ignored: the lack of promotion of good music.

The music that gets pushed to the masses is vanilla, formulaic, by-the-numbers crap.

Music that would actually move people, music that is relevant, creative, and artistic, gets sidelined. It's a shame.
Old 04-26-13, 02:39 PM
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Re: iTunes turns 10!

She was only ten years old
Old 04-27-13, 03:51 PM
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Re: iTunes turns 10!

Wonder how many people who bought music on Itunes 10 years ago still have access to those purchases now??
Old 04-28-13, 03:28 AM
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Re: iTunes turns 10!

I miss the days when songs cost $.99.

Itunes responsible for killing the album

Back then black and white and no color

Old 04-28-13, 03:54 AM
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Re: iTunes turns 10!

iTunes did not kill the album or the music industry. iTunes promoted the same agenda that the music industry had been pushing since 1950.
Old 04-28-13, 09:41 AM
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Re: iTunes turns 10!

Originally Posted by JeffTheAlpaca
Itunes responsible for killing the album
And thank goodness for that.
Old 04-28-13, 09:48 AM
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Re: iTunes turns 10!

And if, by chance, I'm still using iTunes in another 10 years, I'll (hopefully) still be using version 10.7.0.21.
Old 04-28-13, 10:10 AM
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Re: iTunes turns 10!

Originally Posted by JeffTheAlpaca

I still remember this as my first iPod, I love it! It had a nice glow to it.
Old 04-29-13, 04:29 AM
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Re: iTunes turns 10!

The #1 selling song in the history of Itunes

<iframe width="560" height="315" src="http://www.youtube.com/embed/1IDrg1zaIm8" frameborder="0" allowfullscreen></iframe>
Old 04-29-13, 09:47 AM
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Re: iTunes turns 10!

Can music sales ever come back? Likely not, says NPD analyst Russ Crupnick. He believes musicians will have to increasingly rely on touring, merchandise sales and endorsement deals to make up for lost album sales.
I still believe people would buy albums (digitally or otherwise) if the entire album, or majority of the songs on it, were good. Don't try to sell me an album with 2 good songs and filler.
Old 04-29-13, 10:08 AM
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Re: iTunes turns 10!

Amazon is where it's at.
Old 04-29-13, 10:38 AM
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Re: iTunes turns 10!

Originally Posted by DJLinus
And if, by chance, I'm still using iTunes in another 10 years, I'll (hopefully) still be using version 10.7.0.21.
Fuck. Yeah.

I upgraded to 11, and had to downgrade. I have used and loved iTunes for a long time, but the features they took out of 11 were inexplicable and unwarranted. Glad I was able to revert, and I'll never upgrade it now.
Old 04-29-13, 11:49 AM
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Re: iTunes turns 10!

Originally Posted by JeffTheAlpaca
The #1 selling song in the history of Itunes

<iframe width="560" height="315" src="http://www.youtube.com/embed/1IDrg1zaIm8" frameborder="0" allowfullscreen></iframe>
Proving mainstream music fans get the "music" they deserve.
Old 04-29-13, 12:35 PM
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Re: iTunes turns 10!

Originally Posted by Quack
I still remember this as my first iPod, I love it! It had a nice glow to it.
There was definitely something wonderful about my first iPod, which was the same model. It didn't have a lot of extras, but it was extremely fun to transfer my CDs to it and bring my music collection everywhere with me.
Old 04-29-13, 12:45 PM
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Re: iTunes turns 10!

Originally Posted by bunkaroo
Proving mainstream music fans get the "music" they deserve.
"Get off my lawn"
Old 04-29-13, 12:51 PM
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Re: iTunes turns 10!

Originally Posted by Tarantino
"Get off my lawn"
Sorry didn't mean to offend any BEP fans.
Old 04-29-13, 12:57 PM
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Re: iTunes turns 10!

Originally Posted by bunkaroo
Sorry didn't mean to offend any BEP fans.
Not a fan, just an observation.
Old 04-29-13, 02:16 PM
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Re: iTunes turns 10!

Because that song is hardly worth committing to any physical medium

"It's not that I'm old- your generation's music really DOES suck!"
Old 04-29-13, 03:14 PM
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Re: iTunes turns 10!

Originally Posted by Tarantino
Not a fan, just an observation.
You don't have to be a crotchety old man to recognize their music panders to the lowest common denominator. But feel free to post your rebuttal.
Old 04-29-13, 03:16 PM
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Re: iTunes turns 10!

For the record, I don't think iTunes killed the album either. Casual music fans did. And they would have no matter what medium allowed them to easily digest the "good" songs without buying that "bad" ones.

None of the artists I listen to frequently are the types to have big singles anyway with the exception of maybe Muse. I buy nothing but full albums from iTunes.
Old 04-29-13, 03:25 PM
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Re: iTunes turns 10!

So this means Ke$ha is not one of the greatest artists of our time?
Old 04-29-13, 08:09 PM
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Re: iTunes turns 10!

Originally Posted by bunkaroo
You don't have to be a crotchety old man to recognize their music panders to the lowest common denominator. But feel free to post your rebuttal.
I'm sure your parents said the same about Led Zeppelin and that 'loud rock music'.
Old 04-29-13, 09:21 PM
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Re: iTunes turns 10!

Originally Posted by Tarantino
I'm sure your parents said the same about Led Zeppelin and that 'loud rock music'.
There's a difference between the next gen's genres pushing boundaries that people aren't used to and just plain fucking sucking by being commercial-targeted trash. I'm sorry you can't see that.

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