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December 12, 2006

Forrester says iTunes sales suck.

iPods are selling like water. iTunes library gets bigger and better each day. But this report from The Register says iTunes sales are "collapsing." Interesting reading to say the least.

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Yes, but this story is from England which has a much different outlook about downloadable music than here in the US.

The story is. But I think the numbers are global. Here's what the New York Times had to say about it.

Oh...and don't get me wrong. I WANT iTunes and Apple to succeed. These stories just make me wonder if this is the way we'll be digitally buying music a few years from now...

But really, Apple is making money off the iPods more than they are off the music. From that $.99 per song,most of that goes to the artists and their labels. I think they'd be more concerned if they planned on iTunes to drive iPod sales, not the other way around.

I think iTunes is about where it should be right now. iTunes is the dominant player in a newish and still confusing market. I've been using it since it started, but people like my sister (35 years old, probably your average computer user) just started. And she still prefers to buy CDs and rip them (I had to teach her that, too).

Personally, adoption of digital buying has surpassed my expectations.

Oh... and emusic.com rules.

Are they going to get Justin Long and John Hodgeman to make us feel out-of-touch if we bought a CD from a brick and mortar?

How far back are they looking to determine the ups and downs? I have theory that might make sense if the reported down trend is in the last month or two. If longer this idea won't hold water:

I wouldn't be surprised if the most recent missing traffic on iTunes comes roaring back after Christmas in the form of gift card cash-ins.

Denial ain't just a river in Egypt.

http://www.engadget.com/2006/12/13/apple-denies-itunes-slump-mania-resumes/

Actually, that link to endgadget.com provided another link to the writers of the original report. They are trying to say that iTunes ins't losing people but sales ARE leveling off.

http://blogs.forrester.com/devicesmedia/2006/12/itunes_sales_ar.html

Of course, all this may not have been such a big deal had it not been Apple we're writing about. Talk about brand loyalty...

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