As per reports, Apple is set to bring some major reforms as per its liking and what might affect the music industry in a big, big way. Rumors have it that the technology giant is looking to shutdown their iTunes store in order to stop music downloads, once and for all.
If statistics are to be focused on, ever since music downloads reached its peak in 2012, streaming numbers have started to grow on a massive scale which has eventually led to the downfall of its superior half, i.e. paid downloads. Also a question of when and not if, Apple looks to be firm on their decision as per various sources with an undisclosed Executive citing:
“Keeping [iTunes music downloads] running forever isn’t really on the table anymore. [the plan is to] ride the [iTunes music download offering] out for the next 3 to 4 years, maybe longer.”
Ever since Apple Music was rolled out back in July 2015, the company has seen comprehensive growth in their business having stacked over 10 million subscribers already and with a further target of achieving 20 million by 2017. As streaming and paid subscription services look to be the future of music, the IT giant has major plans to capitalize. And by 2020, Apple’s streaming revenue will be 10 times greater than that of their downloading sector.
Need another piece of statistic to back their claims, downloads seem to have declined by 16% in nominal terms with further downfall predicted which lies between the 25-30% mark. And as Spotify and SoundCloud continue to usher with the former having already breached the 100 million users mark, it certainly doesn’t seem that Apple has any plans to hold back on themselves. According to further claims, they seem to have two different possible time-tables in mind with one that would end song sales within two years while the other one being a stead-fast effort which will see them phase out iTunes music downloads in the next three to four years.
With an initial statement yet to come, it would be interesting to see how it affects the electronic music industry for that matter where artists/DJs rely on iTunes apart from Beatport and even independent labels who rake in major profits from track sales.
Source: Digital Music News
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