Digital Download Sales Stalling?

An excerpt from the Billboard Update last week regarding Apple’s quarterly report and music download sales reads…

“More iPod owners equals more digital download sales, right? That statement by Apple indicates about five million consumers – across all markets – adopted portable digital music for the first time last quarter. Portable devices like the iPod tend to be the entry point. Apple shipped 7.4 million iPhones in its fiscal Q4 – seven times as many as in the same period last year – and sell-through improved 38% year-over-year. It still sells millions of iPods in a quarter. But U.S. download sales are stagnant. In the previous earnings call, Apple’s CFO said iTunes sales growth was being driven by the over-the-air capabilities of the iPhone and iPod Touch. Even then, there was little growth in digital downloads outside of the standard seasonal increase around Christmas. (Seeking Alpha)”

iPhone

iPhone

I don’t know about you but this information disturbed me a bit. The music industry once thought the iPod was going to save the music business but it appears that may not be the case? My supposition based on this article is that iPhones and iPod Touch are being lumped in with iPods. Just because a person buys an iPhone doesn’t necessarily mean they will purchase music which is much the same as every Wal-mart customer doesn’t visit the cd department. It would be wise for the music industry to concentrate efforts on educating the non-music buying iPhone owners on how easy it is to purchase and listen to music. I would guess there are many iPhone users that don’t even realize they could connect their iPhone to a stereo or TV and enjoy music with a simple cord. Over the years the industry has discussed joining forces to run publicity campaigns similar to the “Got Milk” campaign. How about a 60 second video that is mass marketed on the internet and included with every iPhone or other MP3 Player purchase that demonstrates the simple process of purchasing music and playing it through your stereo? What if Apple included that simple cord with every iPhone purchase?

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