Not since the garden of Eden has an Apple made such an impact
The latest report from market researcher Instat shows sales of online digital music reached $3.05 billion, up 49 percent over 2006.
Digital sales account for 10 percent of the market, from 6 percent in 2007. Instat projects that digital sales will reach 40 percent of all music sales in 2012.
Apple’s iTunes Store looks set to scoop the lion’s share. In the five years, today, since iTunes debuted, Apple’s music outlet has sold over 4 billion tracks – 70 percent of all digital music sold worldwide. The operative word is ‘sold’ – piracy accounts for a growing share.
If current trends hold, Apple will account for more than 25 percent of all music sales before iTunes’ tenth birthday. It is installed on about 30 percent of all computers worldwide, making it perhaps the most successful freeware of all time. The application works so well that no rival is likely to emerge.
Apple currently pays the music majors about 65 of the 99 cents it charges per track, but they are pressuring the company to accept a tiered pricing structure by withholding DRM-free downloads, while flirting with other online services like Amazon’s MP3 store.
It may boomerang. ‘I think Apple will eventually work directly with the creators of content,’ said MacWorld Senior Editor Dan Frakes.
An Apple label . . . hmmm, Sir Paul might have something to say about that.
